Greenlane risks Nasdaq delisting over share price rule

Published 04/04/2025, 22:10
Greenlane risks Nasdaq delisting over share price rule

Greenlane Holdings, Inc. (NASDAQ:GNLN), a distributor of durable goods with a market capitalization of just $2.1 million, faces delisting from the Nasdaq Global Market after failing to meet the minimum bid price requirement. The company received a notice from Nasdaq on April 2, 2025, indicating that its stock had closed below the $1.00 minimum bid price for 30 consecutive business days. Trading at $0.24 and down over 95% in the past year, the stock has struggled significantly, according to InvestingPro data.

Nasdaq typically allows a 180-day period to regain compliance, but due to a previous reverse stock split, Greenlane is not eligible for this grace period. The company’s securities are scheduled to be delisted on April 9, 2025, unless an appeal is filed. If no appeal is requested, trading suspension will begin on April 11, 2025. InvestingPro analysis reveals concerning fundamentals, with a WEAK Financial Health Score and significant cash burn rate.

Greenlane intends to appeal before the April 9 deadline, which would stay the delisting pending a decision by the Nasdaq Hearings Panel. However, there is no guarantee that the panel will rule in favor of Greenlane or that its common stock will remain listed on the Nasdaq Capital Market.

The company’s future on the Nasdaq remains uncertain, with outcomes depending on the ability to comply with listing standards and the panel’s upcoming decision. This report is based on a press release statement from Greenlane Holdings, Inc.

In other recent news, Greenlane Holdings, Inc. has secured approximately $25 million through a private placement involving the sale of common stock and warrants to institutional investors. The funds are expected to be used for debt repayment, general corporate purposes, and working capital. In a separate development, Greenlane has appointed Michael C. Howe as an independent director, thereby regaining compliance with Nasdaq’s independent director and audit committee requirements. Howe brings over 40 years of experience in the consumer and healthcare sectors, which is anticipated to benefit Greenlane’s strategic growth objectives.

Additionally, Greenlane announced the appointment of Barbara Sher and Michael C. Howe to its Board of Directors following its Annual Meeting. Sher, who became CEO in May 2024, brings extensive leadership experience to the board. Shareholders also approved amendments to the 2019 Equity Incentive Plan and the 2024 August Warrant, which includes provisions for a potential Reverse Stock Split. Furthermore, the company ratified PKF O’Connor Davies, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024. These recent developments indicate significant changes in Greenlane’s governance and financial strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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