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Greenlane Holdings Inc (NASDAQ: GNLN) Announces the Completion of Its Acquisition of Davinci Vapors



Greenlane Holdings Inc (NASDAQ: GNLN) recently announced its completion on the acquisition of Davinci, a company that manufactures and develops premium portable vaporizers, among other products.

The company is one of the biggest producers and distributors of premium cannabis accessories and special vaporized products.

What the company will gain from the deal

The company expects the acquisition to yield approximately 12 million dollars in sales. The company predicts that its revenue will rise following its gross margins of 60% in 2021. The maximum amount of consideration utilized in the acquisition will be up to 20 million dollars depending on the achievement of certain performance-based earn-outs.

The 20 million dollars is compromised with cash and stock, enhancing the acquisition’s success. Nick Kovacevich, Greenlane’s CEO, stated that the company was excited to conclude another fast-growing and innovative brand that would promote and make the company more attractive.

Kovacevich added that the company was pleased with the pace of acquiring Davinci and plans to create incremental progress on its revenue targets for 2022 and 2023.

The company hired Morrison & Foerster to oversee the transaction

The company utilized the services of Morrison & Foerster LLP to oversee the acquisition process, acting as the legal counsel to Greenlane. At the same time, Hyperion Capital Inc was the exclusive financial advisor to DaVinci. In addition to the financial advisor, DaVinci also obtained the legal services of Alliance Legal Partners Inc and Ballard Spahr LLP.

The company is a global platform for producing and distributing vape solutions, lifestyle products, and premium cannabis products. Greenlane operates as a powerful organization of brands and Omnichannel distribution platform, providing quality customer service and logistics to speed customer growth.

Founded in 2005, the company serves a large and expansive client-el with more than 8,000 retail locations, including licensed smoke shops and specialty retailers. The company is considered reliable by most multi-state operators such as PAX Labs and CCELL.

The company’s brand delivers a diverse portfolio comprising Pollen Gear, Marley Naturals, and DaVinci Vaporizers and has immersive retail stores in New York City and Malibu.

Moreover, it has operations in South America, Australia, Europe, and Canada.

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