Greenlane Holdings, a distributor of cannabis accessories, is undertaking cost-cutting measures in a bid to raise capital and achieve profitability.
The completed and anticipated measures announced Thursday include:
- An unspecified number of job cuts across “a broad spectrum of divisions.” The cuts are expected to save about $8 million per year.
- A plan to reduce “facility footprints worldwide.”
- A sale-leaseback deal on its head office.
- Selling “non-core assets.”
- No longer selling some “lower-margin third-party brands.”
- Increasing some product prices.
Florida-based Greenlane also intends to pursue an asset-based loan, according to a news release.
“The company expects this plan to help generate liquidity in excess of $30 million if all measures described above are implemented successfully,” the release noted.
Greenlane’s chief marketing officer is also stepping down, and the company has appointed a new chief commercial officer.
“We have made meaningful efforts to eliminate nonessential and duplicative costs as a result of our merger with KushCo,” Greenlane CEO Nick Kovacevich said in a statement.
“However, now is the time to take our cost-cutting initiatives to the next level.”
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A merger of Greenlane and KushCo closed in September 2021.
Greenlane estimated that it will report a net loss of $11 million-$13 million for its fourth quarter and a net loss of $53 million-$55 million for its 2021 fiscal year.
