Ending the day on 03/31/21, Greenlane Holdings Inc.(NASDAQ: GNLN) stock price increased 29.71% at $5.30. In the course of the day, Greenlane stock rose as high as $5.75 with the lowest mark touching $4.52.
Taking a more long-term view, GNLN stock has ranged from $1.43 to $8.73 in the past 52 weeks. News of Greenlane’s intention to merge with a provider of ancillary products and services triggered a surge in GNLN stock.
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Merger deal structure:
A global brand house, Greenlane Holdings is a one-of-a-kind provider of cannabis accessories. In addition to selling vaporizers to smoke shops, dispensaries, and specialty retail stores, GNLN also sells online directly to consumers through its vapor.com e-commerce site.
A definitive merger agreement between Greenlane and KushCo Holdings has been reached by the two companies yesterday, thus making KushCo a wholly-owned subsidiary of Greenlane.
- A share of KushCo common stock is exchanged for approximately 0.2546 shares of GNLN’s Class A common stock in the Merger Agreement.
- As a result of the Base Exchange Ratio, KushCo shareholders will own 49.9% and GNLN shareholders will own 50.1% of the combined company’s common stock.
- KushCo’s 20-day volume-weighted average closing price ending on March 30, 2021, represents a 6.3% premium to the Base Exchange Ratio.
What will GNLN get out of it?
For Greenlane (GNLN), the transaction is expected to result in synergies of up to $20 million per year within two years while GNLN will be serving a premier group of customers, including top multistate retailers, most of the nation’s top smoke shops, and millions of consumers.