KushCo and Greenlane Kick Off Proxy Solicitation Process and Move One Step Closer Toward Completing Mega-Merger

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

In a move that will result in the creation of the leading ancillary cannabis company and house of brands, KushCo Holdings, Inc. KSHB and Greenlane Holdings, Inc. GNLN have announced an all-stock merger agreement.

The transaction was approved unanimously by the boards of directors for both Greenlane and KushCo, recommending that stockholders approve the transaction. The deal is expected to close in the third quarter of 2021, subject to the requisite stockholder approvals. 

The merger comes at an important inflection point in the cannabis industry, as the biggest operators consolidate the sector, new states legalize adult recreational cannabis use, and the industry as a whole moves closer to full federal legalization, which has never seemed more likely to occur as it does today. On June 29, 2021, New Mexico became the latest state to make adult recreational cannabis use legal in the state. New York also recently approved recreational legalization, along with Virginia and Connecticut, bringing the total to 19 states that have legalized adult recreational use and nearly 40 that have legalized medical use.
The merger would allow the two companies to cross-sell complementary products and services to their respective customer bases, marrying Greenlane’s proprietary owned brands and leading B2C presence with KushCo’s deep B2B relationships with the top multi-state operators (“MSOs”).  In addition to these revenue synergies, the merger is expected to generate between approximately $15 - $20 million in annual cost saving synergies within 24 months of closing, and create one of the few opportunities for investors to invest in the fast-growing U.S. cannabis industry with Greenlane’s Nasdaq listing.

KushCo’s co-founder and CEO Nick Kovacevich will become CEO of the combined company, while Greenlane’s CFO Bill Mote will serve as CFO for the combined company. 
The companies recently announced the start of their proxy solicitation process, which will lead up to their respective stockholder meetings to approve the merger, both scheduled to occur on August 26, 2021. 

The definitive joint proxy statement/prospectus was first mailed to stockholders of both companies on or about July 6, 2021. Stockholders of both companies are encouraged to vote their shares early, and to reach out to the applicable proxy solicitor (D.F. King for Greenlane, and Morrow Sodali for KushCo) with any questions or if they need assistance in voting their shares. For more information, you can view the July 6 press release here. 
Greenlane and KushCo have also announced the launch of www.greenlanekushcotogether.com, a dedicated transaction website consolidating publicly available information on the transaction for investors of both companies, including messages from both CEOs as well as a helpful section addressing frequently asked questions.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Posted In: KushCo HoldingsPartner ContentCannabisNewsPenny StocksMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.