Greenlane issues new shares after warrant exercises

Greenlane Holdings, Inc. (NASDAQ:GNLN), a distributor of durable goods, has announced the issuance of additional shares following the exercise of warrants. As of the end of the trading day on Monday, the company reported an aggregate of 79,836,174 shares of common stock outstanding. The company’s stock currently trades at $0.01, near its 52-week low, with a market capitalization of just $0.13 million.

The new shares were issued as a result of the exercise of pre-funded and Series B warrants associated with Greenlane’s private placement concluded on February 19, 2025. The warrants were part of a registration statement on Form S-1, which the Securities and Exchange Commission declared effective on April 23, 2025. According to InvestingPro data, the company operates with a significant debt burden of $8.68 million and has seen its revenue decline by nearly 80% over the last twelve months.

The Series B Warrants come with an exercise price of $0.238, which is the established floor price and will not be subject to further adjustments. This exercise price was set according to the terms outlined in the warrants.

Greenlane’s recent private placement and the subsequent increase in outstanding shares are part of the company’s broader financial strategy. This move could potentially impact the company’s market capitalization and shareholder value.

The company, headquartered in Boca Raton, Florida, operates within the wholesale durable goods market under the industrial classification code 5099. This announcement, based on a press release statement, represents a significant development for the company and its investors.

In other recent news, Greenlane Holdings, Inc. announced a significant development with the approval of several key proposals during its Special Meeting on April 17, 2025. Shareholders granted the board the authority to implement a reverse stock split, ranging from one-for-three to one-for-twenty-two, and approved an increase in authorized Class A common stock from 600 million to 1.8 billion shares. This move was formalized through a Certificate of Amendment filed with the Secretary of State of Delaware. Additionally, Greenlane secured approximately $25 million through a private placement with institutional investors, involving the sale of common stock and warrants. The funds are expected to support debt repayment and general corporate purposes. Meanwhile, Greenlane faces potential delisting from the Nasdaq Global Market for not meeting the minimum bid price requirement, with plans to appeal the decision before the April 9 deadline. The company’s future on Nasdaq hinges on compliance with listing standards and the outcome of the Nasdaq Hearings Panel’s decision. These developments highlight Greenlane’s efforts to navigate financial challenges and potential growth opportunities.

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