Ancillary cannabis company Greenlane Holdings plans to sell its marijuana packaging division.
Greenlane intends to invest proceeds from any sale “in the company’s consumer brands business,” the Florida-based company said Tuesday in a quarterly earnings news release.
The packaging business comprises between 15% and 20% of the company’s total revenue, Greenlane said.
Any sale would also “significantly reduce the company’s working capital and warehousing requirements,” according to the release.
Boca Raton-headquartered Greenlane merged last year with KushCo, which specialized in packaging among other ancillary marijuana products.
In a management statement, Greenlane said:
- Its packaging operation is “a thriving business, but one that ties up a lot of our resources, space, and working capital.”
- It expects “significant proceeds” from the sale will serve as nondilutive capital.
Greenlane announced significant cost-cutting measures in March, and the company said Tuesday those initiatives have led to expected savings worth more than $1.4 million per year.
Greenlane reported a net loss of $14.5 million for the quarter ended June 30, with $39.9 million in revenue.
Shares of Greenlane trade as GNLN on the Nasdaq exchange.