Greenlane IPO: 5 things to know about the closest thing to a U.S. cannabis company to go public on Nasdaq

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Greenlane Holdings Inc. plans to raise roughly $98 million through an initial public offering on the Nasdaq, which would arguably make it the closest thing...

Greenlane Holdings Inc. plans to raise roughly $98 million through an initial public offering on the Nasdaq, which would arguably make it the closest thing to a U.S. cannabis company available for trade on a major U.S. exchange.

Greenlane says it expects to sell about 5.3 million shares, with 4.7 million from the company and the rest from selling shareholders, at $14 to $16, raising up to $98.1 million, according to filings with the Securities and Exchange Commission. Lead underwriters Cowen & Co. and Canaccord Genuity have access to an additional 800,000 shares from selling shareholders. The company has applied to trade under the ticker symbol GNLN, and is expected to price shares and begin trading next week.

There is not much information about the founders in the prospectus, despite their outsize control of the company. Greenlane says that LoCascio received an accounting degree from Valencia Community College in Florida and has run the company since its inception. Neither the filing nor Locasio’s LinkedIn page list any employment history before Greenlane.

The company had $7.3 million in cash as of the end of 2018 and in January of 2019 raised an additional $45.3 million through a convertible debt offering. In fiscal 2018, it posted cash flows of $5.3 million, up from $389,201 in the year-earlier period.

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