Greenlane Holdings, a Florida-based ancillary marijuana company, said it entered into definitive agreements with institutional investors to raise $32 million from the sale of stock and warrants.
A company news release didn’t specify how the money would be used, but Greenlane has said in previous regulatory filings that proceeds will be used for working capital and to fund acquisitions.
Greenlane in March announced an all-stock agreement to acquire California-based KushCo Holdings, with plans for the combined company to sell vaporizers, rolling papers, child-resistant packaging and other cannabis-related supplies.
The stock and warrant sale, which is expected to close Aug. 11, includes:
- The sale of 10.1 million shares plus warrants giving the buyers the right to purchase up to 6.1 million shares of stock.
- The effective purchase price of the stock and warrants is $3.16 per share, according to the release.
- The warrants have an exercise price of $3.55 per share, can be exercised immediately and have a term of five years.
Greenlane shares, which trade on the Nasdaq as GNLN, were down 7% to $2.85 as of midday Monday.