Why Greenlane Holdings Stock Is Soaring - Greenlane Hldgs (NASDAQ:GNLN)

Greenlane Holdings, Inc. (NASDAQ:GNLN) shares are soaring Monday after the company announced it has entered into a non-binding letter of intent (LOI) to be the exclusive distributor in the U.S of Safety Strips, Inc.’s fentanyl, xylazine and drink spike detection test strips.

The Details:

Greenlane effected a 1-for-11 reverse stock split last Monday which left the stock with a float of less than 530,000 shares and short-interest of 18.7%. The high short-interest and low float may be contributing to the volatile price action following the company's announcement.

As part of Monday's distribution announcement, Barbara Sher, CEO of Greenlane stated:

“We are excited and proud to provide Safety Strips affordable and highly accurate tests with trace level fentanyl and xylazine detection capabilities to our customers throughout the U.S. Safety Strips products are an innovative and complementary addition to our extensive product portfolio, and we plan to leverage our strong distribution, operations, marketing and sales teams to support the brand. We look forward to growing the business together.”

How To Buy GNLN Stock:

By now you're likely curious about how to participate in the market for Greenlane Holdings – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

GNLN Price Action: According to Benzinga Pro, Greenlane Holdings shares are up 220% at $7.82 at the time of publication Monday.

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Image: Pete Linforth from Pixabay

GNLNGreenlane Holdings Inc

$2.502.04%

Overview

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