10 Jan Greenlane Holdings – In the fast lane with expanding global footprint
GreenLane Holdings Inc (NASDAQ: GNLN), a Company dealing in wholesale and retail distribution of consumption accessories and vaporization products, announced a comprehensive distribution agreement with Advanced Vapor Devices (AVD), a manufacturer of vaporizer cartridges and batteries. The agreement will cover the entire range of AVD products such as glass and resin cartridges, glass disposable cartridges, and rechargeable and disposable batteries. The Company will also distribute AVD’s Easy-Press Glass Cartridge, an industry first glass cartridge with a thumb snap-on and tamper-proof locking system that overcomes the limitations posed by rapid high-end high-production filling and capping environments as per a Company statement.
Advanced Vapor Devices (AVD) develops vaporizer cartridges and batteries for plant-based oils following three critical design and manufacturing principles namely firm control over the supply chain, ensuring the highest quality and safety; Engineering vaporizers that deliver a premium user experience and aim to become the industry leader by creating reliable leak-proof and break-proof products.
Aaron LoCascio, Chairman and Chief Executive Officer of Greenlane commented,
“We are excited to be partnering with AVD to bring its innovative vaporization technology to market,” “AVD’s product technology delivers fulsome flavors without compromising on cartridge and battery reliability or integrity. We will leverage our expansive distribution network to make AVD’s full suite of products available to consumers through licensed cannabis dispensaries, as well as smoke and vape shops throughout North America.”
The Company had previously entered into an exclusive channel partnership with Phitler Labs, a pioneer in smoke and vapor filtration technologies in November 2019. The agreement is for the distribution of Philter’s POCKET and PHLIP brands, helping the company expand its retail footprint in the U.S and Canada.
GreenLane Holdings (NASDAQ: GNLN)
Market Cap: $124M; Current Share Price: 2.96 USD
Data by YCharts
The Global legal marijuana market is likely to reach over USD 66.3 billion by the end of 2025, as per a report by Grand View Research, Inc, growing at a CAGR of 23.9%. There is a growing acceptance of the curative effects of cannabis, with some countries such as Canada and certain states of U.S legalizing the use of Marijuana for medical and recreational use. Research has time and again shown that cannabinoids (CBD), extracted from the cannabis plant, have varied medical uses with minimal side effects, making it a sought after alternative to traditional pharmaceutical options.
The U.S, where the use of cannabis has only been legalized in 33 states for medical use and 11 states for recreational use, is one of the largest untapped markets for Cannabis, with an estimated value of over USD 11.9 billion in 2018, which is likely to grow at a CAGR of 24.1% from 2019 to 2025. Currently 33 states in the U.S along with Washington, D.C. have legalized medical marijuana while 10 states (plus D.C.) permit recreational cannabis. 2018 was a great year for CDB industry, not only was the Farm Bill passed that allowed for the sale of hemp and hemp based cannabidiol products, but the FDA also approved its very first cannabis-derived drug Epidiolex for treatment of seizures.
This has proven to be a great opportunity for a number of ancillary industries such as consulting, cultivation, delivery, packaging and branding solutions to establish a strong presence as an indispensable part of the industry. According to estimates by Reports and Data the Global Packaging industry will reach USD 5.20 billion by 2026 growing at a CAGR of 26.4% from 1.39 billion in 2018.
There is a growing demand for packaging material that is recyclable, biodegradable, and environmental friendly, which can retain the freshness and integrity of cannabis and hemp extracts, medicines and edibles. We take a look at some companies that are bringing innovative and customized solutions to the cannabis packaging industry.
Greenlane offers a comprehensive platform for premium vaporization and lifestyle accessories dealing with wholesale, direct-to-consumer, supply and packaging, cannel and drop shop. The Company has more than 5000 SKU’s across 130 suppliers and has a customer base of more than 11,000 retail outlets.
Greenlane’s Pollen Gear brand is a pioneer in child resistant packaging solutions and has been recognized as one of the Top 100 cannabis companies in 2018, by the Entrepreneur Magazine. The Company has a many patents to its credit and is the first in industry to introduce a child-resistant glass jar collection named the Hi-Line. The Company acquired Pollen Gear in January 2019, before which it served as its exclusive global distributor.
The Company manufactures Glass Jars, Containers, Bags, Cases, Packaging and Tubes under brand names like Lo-Pro, PopBox, SnapTech, Button Box and Five10. The Company has recently been awarded a second patent by the U.S PTO for its child-resistant SnapTech® Bags, which are used by leading cannabis brands such as Medmen, Organigram and Farma.
The patent covers its snap-locking mechanism which offers ASTM (American Society for Testing and Material s) complaint Child-resistant solutions.
This patent is an addition to an already robust patent portfolio of the Company, which has over 30 patents and patents applications for its Hi-Line™ jar range. Besides this Greenlane has over 100 patents and patent applications across a broad spectrum of pollen gears offerings.
In addition to Pollen Gear, Greenlane has a bouquet of brands that offer premium vaporization products and accessories in the U.S and Canada. The Company’s customer base has over 7,000 independent smoke shops and regional retail chain stores, along with licensed cannabis cultivators, processors and dispensaries. The Company also operates a direct-to-consumer e-commerce websites named Vapor.Com.
Greenlane has over 50+ partnerships with major brands and has a robust network of direct and retail customers serving over 10 million people. The Company has been building strategic partnerships and entering into distribution agreements to further its reach, some of its recent agreements include Santa Cruz Shedder, K.Haring Glass Collection, Green Lotus, Cookies to name a few. The Company also acquired Conscious Wholesale, a leading European wholesaler and retailer of consumption accessories, vaporizers, and other high-quality products, to expand its global footprint as per a company statement.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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