Greenlane boosts authorized shares to 1.8 billion

Published 17/04/2025, 17:26
Greenlane boosts authorized shares to 1.8 billion

BOCA RATON, FL – Greenlane Holdings, Inc. (NASDAQ:GNLN), a distributor of durable goods currently trading at $0.22 per share with a market capitalization of $1.91 million, announced today that it has officially increased its authorized Class A Common Stock from 600 million to 1.8 billion shares. According to InvestingPro data, the company operates with a significant debt burden and has been quickly burning through cash. This move comes after a special stockholder meeting held on April 17, 2025, where participants approved the issuance of warrants and shares of common stock, alongside the authorization to increase the number of authorized shares.

The expansion in authorized stock was formalized through a Certificate of Amendment to the Amended and Restated Certificate of Incorporation filed with the Secretary of State of the State of Delaware. The company, which is incorporated in Delaware and has its principal executive offices in Boca Raton, Florida, stated that the increase in shares is denominated in $0.01 par value per share.

In addition to the approval of the share increase, stockholders at the special meeting also greenlit the issuance of certain warrants and shares of common stock underlying the warrants. These were part of a securities offering concluded on February 19, 2025. However, the Registration Statement covering the shares of Common Stock underlying the warrants issued in the February offering has not yet been declared effective by the SEC.

The news of the authorized share increase is significant for Greenlane Holdings, as it reflects the company’s potential for growth and the need for additional capital. The company’s stock is traded on the Nasdaq Global Market under the ticker symbol GNLN. InvestingPro analysis indicates that while analysts anticipate sales growth of 15% in the current year, the stock has experienced significant volatility, falling over 94% in the past six months. The company’s financial health score is currently rated as WEAK, with 13 additional key insights available to Pro subscribers.

This report is based on a press release statement and provides a factual summary of the events without any subjective assessment or speculative commentary. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading below its estimated Fair Value, though investors should note the company’s negative EBITDA of -$10.86 million in the last twelve months and current RSI readings suggesting oversold conditions.

In other recent news, Greenlane Holdings, Inc. has secured approximately $25 million through a private placement agreement with institutional investors. The transaction involves the sale of Common Stock and investor warrants, priced at $1.19 per unit, with the closing scheduled for February 19, 2025. This capital infusion is expected to aid in debt repayment, general corporate purposes, and working capital. Aegis Capital Corp. acted as the exclusive placement agent for this offering.

In another development, Greenlane faces the risk of delisting from the Nasdaq Global Market due to its stock price falling below the $1.00 minimum bid requirement for 30 consecutive business days. The company received a notice on April 2, 2025, and plans to appeal the delisting before the April 9 deadline. The outcome of this appeal will determine whether Greenlane can maintain its Nasdaq listing. These recent developments highlight ongoing challenges and strategic financial maneuvers by Greenlane Holdings, Inc.

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