KushCo Holdings Inc has said its stockholders voted overwhelmingly in favor of its proposed merger with Greenlane Holdings Inc at a special meeting held on August 26, 2021.
The California-based company said over 97% of votes cast supported the merger, which will result in it becoming a wholly-owned subsidiary of Greenlane in an all-stock, tax-free business combination. Greenlane's stockholders have also approved the merger.
“Our stockholders have spoken loud and clear that they overwhelmingly support this merger," KushCo co-founder, chairman and CEO Nick Kovacevich said in a statement. "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."
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KushCo said it is committed to finalizing the integration planning process with Greenlane to ensure “the best possible start as a combined company”.
The company previously said it expects the merger to create a leading ancillary cannabis company serving a premier group of customers, including many of the leading multi-state operators and licensed producers, top smoke shops in the US and millions of consumers globally.
Kovacevich will lead the combined company as CEO, while Greenlane co-founder Aaron LoCascio will serve as president and Greenlane’s Bill Mote and Adam Schoenfeld will become the chief financial officer and chief strategy officer, respectively.
Under the terms of the merger agreement, announced on March 31, 2021, KushCo’s stockholders will receive roughly 0.25 shares of Greenlane Class A common stock for each share of KushCo common stock. This is expected to result in KushCo stockholders owning approximately 49.9% of the combined company’s common stock and Greenlane stockholders owning the remaining 50.1%.
KushCo has established itself as a premier provider of ancillary products and services to the global cannabis and CBD industries. The company has been operating for more than 10 years, selling more than one billion units to growers, processors, producers, and brands across North America, South America, and Europe.
Greenlane is a global house of brands and one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products to smoke shops, dispensaries, and specialty retail stores, as well as direct to consumer through its online e-commerce platform.
Contact the author at stephen.gunnion@proactiveinvestors.com