Greenlane shareholders approve reverse stock split

On April 17, 2025, Greenlane Holdings, Inc. (NASDAQ:GNLN), a company specializing in the wholesale distribution of durable goods, received shareholder approval for several key proposals during its Special Meeting. The company, currently trading at $0.23 per share and down nearly 97% over the past year according to InvestingPro data, faces significant challenges with a weak financial health score and negative EBITDA of -$10.86 million. Notably, shareholders granted discretionary authority to the board of directors to implement a reverse stock split at a ratio ranging from one-for-three (1-for-3) to one-for-twenty-two (1-for-22), as deemed appropriate by the board within a year following the approval. This move comes as the stock trades significantly below its 52-week high of $21.80, with InvestingPro analysis indicating the company operates with a substantial debt burden and negative free cash flow yield.

In addition to the reverse stock split, shareholders authorized the issuance of warrants and underlying common stock shares, ensuring compliance with Nasdaq listing rule 5635(d). This authorization relates to securities offered and sold by the company on February 19, 2025.

A third proposal that passed will allow Greenlane to increase its authorized Class A common stock from 600 million to 1.8 billion shares. Furthermore, the shareholders approved the Adjournment Proposal, which permits the adjournment of the Special Meeting, if necessary, to solicit additional proxies for the previously mentioned proposals if there are insufficient votes at the time of the meeting.

The approval of these proposals follows the company’s proxy statement dated March 7, 2025, and reflects the consent of the majority of voting shareholders. 4,883,347 shares were represented in person or by proxy at the meeting, with the reverse stock split proposal receiving 4,283,246 votes in favor, the issuance proposal receiving 2,368,777 votes in favor, and the authorized common stock increase receiving 4,221,327 votes in favor.

Greenlane’s management, led by Chief Financial and Legal Officer Lana Reeve, has been authorized to proceed with the actions as approved by the shareholders. This SEC filing-based report highlights the company’s adherence to corporate governance and shareholder democracy. For deeper insights into Greenlane’s financial health, valuation metrics, and growth prospects, investors can access comprehensive analysis and 14 additional ProTips through InvestingPro.

In other recent news, Greenlane Holdings, Inc. has increased its authorized Class A Common Stock from 600 million to 1.8 billion shares. This decision was made following a special stockholder meeting, reflecting the company’s potential need for additional capital. Additionally, Greenlane has secured approximately $25 million through a private placement with institutional investors, involving the sale of Common Stock and investor warrants. The proceeds from this transaction are expected to be used for debt repayment and general corporate purposes.

However, Greenlane is facing a potential delisting from the Nasdaq Global Market due to not meeting the minimum bid price requirement. The company received a notice from Nasdaq indicating that its stock had closed below the $1.00 minimum bid price for 30 consecutive business days. Greenlane plans to appeal the delisting decision before the set deadline, although the outcome remains uncertain. These developments highlight significant changes and challenges for Greenlane Holdings in recent times.

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