Greenlane to sell off marijuana packaging division in wake of merger

Ancillary cannabis company Greenlane Holdings plans to sell its marijuana packaging division.

Greenlane intends to invest proceeds from any sale “in the company’s consumer brands business,” the Florida-based company said Tuesday in a quarterly earnings news release.

The packaging business comprises between 15% and 20% of the company’s total revenue, Greenlane said.

Any sale would also “significantly reduce the company’s working capital and warehousing requirements,” according to the release.

Boca Raton-headquartered Greenlane merged last year with KushCo, which specialized in packaging among other ancillary marijuana products.

In a management statement, Greenlane said:

• Its packaging operation is “a thriving business, but one that ties up a lot of our resources, space, and working capital.”
• It expects “significant proceeds” from the sale will serve as nondilutive capital.

Greenlane announced significant cost-cutting measures in March, and the company said Tuesday those initiatives have led to expected savings worth more than $1.4 million per year.

Greenlane reported a net loss of $14.5 million for the quarter ended June 30, with $39.9 million in revenue.

Shares of Greenlane trade as GNLN on the Nasdaq exchange.

Source: https://mjbizdaily.com/greenlane-to-sell-off-marijuana-packaging-division-in-wake-of-kushco-merger/