Synergistic Acquisition Expands International Distribution, Retail and E-Commerce Capabilities
Broadens Geographic Footprint with 700 Points of Distribution and Sales Across More than 20 European Markets
Firm Also Announces New European Logistics Partnership
BOCA RATON, Fla., Sept. 24, 2019 (GLOBE NEWSWIRE) — Greenlane Holdings, Inc. (Nasdaq: GNLN) (“Greenlane”), a single of the biggest worldwide sellers of premium cannabis accessories, currently announced it has entered into a definitive agreement to obtain Conscious Wholesale (“Conscious”), a top European wholesaler and retailer of consumption accessories, vaporizers, and other higher-top quality merchandise. The acquisition will right away expand Greenlane’s worldwide footprint by means of its complementary solution portfolio, comprised of premium brands such as Firefly, Davinci, PAX and Storz & Bickel, and current distribution channels all through Europe. In addition, Conscious Wholesale operates a retail shop in the Netherlands as properly as e-commerce web-sites, which includes Vaposhop.com.
Conscious operates a top wholesale, e-commerce and retail platform across Europe. Conscious distributes a broad choice of merchandise to roughly 700 points of distribution across a lot more than 20 European markets. The expanded geographic presence and distribution footprint is anticipated to deliver solution and sales synergies with Greenlane’s expansive portfolio of residence brands and third-celebration merchandise. Conscious employs more than 30 staff, is led by an established management group that will stay with the business enterprise, and boasts a culture founded in top quality and compliance that is constant with the Greenlane regular.
In addition to its acquisition of Conscious, Greenlane has also entered into an agreement with UK-primarily based Access Fulfillment for logistics solutions, additional enhancing Greenlane’s capacity to provide merchandise to buyers all through Europe.
“The addition of the Conscious Wholesale platform, Dutch retail shop Azarius, and e-commerce web site Vaposhop.com right away gives us with a powerful and established foothold in Europe and creates possibilities to expand the distribution of each our third-celebration suppliers and residence brands,” stated Aaron LoCascio, Greenlane’s Chairman and Chief Executive Officer. “These firms are hugely synergistic with our current distribution, retail and e-commerce capabilities, and are led by a talented group with a powerful culture that is an superb match with Greenlane. We appear forward to driving development, additional broadening our geographic presence and delivering worth for our shareholders.”
LoCascio continued, “Our partnership with Access Fulfillment is anticipated to substantially expand our access to the European marketplace and, coupled with the Conscious Wholesale acquisition, accelerates our worldwide development and attain.”
“Our complete group is excited to join Greenlane to substantially expand our combined worldwide attain and marketplace leadership,” stated Sanne van Oosten, Conscious Wholesale’s Co-Founder and Director. “We have constructed a platform in Europe that, in connection with Greenlane’s broad solution portfolio, is properly positioned to drive development across all of our markets.”
The acquisitions are anticipated to be right away accretive to annualized net earnings following the close of the transaction. On a consolidated basis, the acquired firms generated USD $11.9 million of income throughout calendar 2018.
Closing of the transaction is topic to customary circumstances. Total consideration for the transaction is up to EUR 7.five million, with EUR four.five million paid up front, consisting of EUR three. million in money and EUR 1.five million in stock. The agreement consists of a provision for prospective added consideration of up to EUR three. million payable in money and stock upon on the achievement of sales development and gross margin targets.
Forward Hunting Statements
Particular matters inside this press release are discussed working with forward-seeking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may possibly involve identified and unknown dangers, uncertainties and other components that may possibly bring about the actual benefits or overall performance to differ from these projected in the forward-seeking statement. Dangers and uncertainties include things like, amongst other people: the anticipated timing of the completion of the acquisition the quantity of shares of the Company’s widespread stock to be issued as partial consideration in the acquisition the prospective payment of added consideration upon the achievement of sales development and gross margin targets the Company’s capacity to reach the anticipated advantages of the acquisition of Conscious Wholesale and the agreement with Access Fulfilment, which includes anticipated accretion to annualized net earnings the Company’s development prospects in Europe and other international markets the present and future overall performance of the Company’s business enterprise development in demand for the Company’s merchandise development in the marketplace for cannabis, nicotine and hemp-derived CBD merchandise the Company’s advertising and commercialization efforts and the Company’s monetary outlook and expectations. For a description of components that may possibly bring about the Company’s actual benefits or overall performance to differ from its forward-seeking statements, please assessment the data below the heading “Risk Factors” incorporated in the final prospectus relating to the Company’s initial public providing filed pursuant to Rule 424(b) of the Securities Act of 1933, as amended, which was filed with the SEC on April 22, 2019 and is accessible on the SEC’s web page at www.sec.gov.
About Greenlane Holdings, Inc.
Greenlane (NASDAQ: GNLN) is a single of the biggest worldwide sellers of premium cannabis accessories, CBD and liquid nicotine merchandise. The Firm operates as a strong residence of brands, third celebration brand accelerator and distribution platform for consumption devices and life style brands serving the worldwide cannabis, CBD, and liquid nicotine markets with an expansive buyer base of a lot more than 11,000 retail areas, which includes licensed cannabis dispensaries, and smoke and vape shops. Greenlane has an established track record of partnering with brands by means of all stages of solution lifecycle, delivering a variety of solutions which includes solution improvement, go-to-marketplace approach, sales and advertising assistance, marketplace investigation, buyer service, direct-to-customer fulfillment, warranty repair, provide chain management, and distribution. In addition to owning and operating its personal brands, Greenlane is the companion of option for numerous of the industry’s top players which includes PAX Labs, (Canopy-owned) Storz & Bickel, JUUL, Grenco Science, Firefly, DaVinci, Pick, Sherbinskis, Bloom Farms, Mary’s Nutritionals, Cookies and dozens of other people. Greenlane’s residence of brands is comprised of youngster-resistant packaging innovator Pollen Gear VIBES rolling papers the Marley All-natural accessory line the Keith Haring accessory line, Aerospaced & Groove grinders, and Larger Requirements, which is each an upscale solution line and an revolutionary retail practical experience with flagship shops at New York City’s famed Chelsea Market place and Atlanta’s Ponce City Market place. The corporation also owns and operates Vapor.com, an sector top e-commerce platform which gives practical, versatile purchasing options straight to buyers. For added data, please go to: https://gnln.com/.
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