KushCo And GreenLane Shareholders Overwhelmingly Approve Big Merger

KushCo Holdings, Inc. KSHB revealed Thursday that its stockholders overwhelmingly voted to approve the previously announced merger agreement with Greenlane Holdings, Inc. GNLN at the special meeting of stockholders, with over 97% of votes cast voted in favor of the proposal.

In conjunction with the Company's special meeting, Greenlane's stockholders also voted earlier Thursday to approve the merger with KushCo.

Pursuant to the terms of the merger agreement, KushCo will become a wholly-owned subsidiary of Greenlane in an all-stock, tax-free business combination.

"Our stockholders have spoken loud and clear that they overwhelmingly support this merger," Nick Kovacevich, KushCo's co-founder, chairman and CEO stated. "We believe they recognize the opportunity for us to create one of the industry's leading ancillary companies, with the right size, scale, strategy, and talent to capitalize on the significant growth opportunities ahead of us. While we are thrilled about achieving this milestone and receiving such a strong stamp of approval from our stockholders, we are committed to finalizing our integration planning process with our friends at Greenlane to ensure the best possible start as a combined company.”

The Deal Summary

• As previously announced, the deal under which KushCo agreed to become a wholly-owned subsidiary of Greenlane is expected to close in the third quarter of 2021.
• KushCo’s Kovacevich will become CEO of the combined company and Greenlane’s CFO Bill Mote will serve as CFO for the combined company.
• Once the merger is closed, KushCo shareholders will obtain roughly 0.2546 shares of Greenlane Class A common stock for each share of KushCo common stock held. In addition, Greenlane Class C shares will be transformed into Greenlane Class B shares on a 3-to-1 basis.

Price Action

KushCo’s shares closed Thursday market session 1.0% lower at 69 cents per share, while Greenlane shares were down 5.45% closing the session at $2.43 per share.

Photo: Courtesy of Esteban Lopez on Unsplash