Greenlane Holdings, Inc. GNLN has sold its stake in VIBES Holdings LLC for $5.3 million in cash.
The strategic sale aligns with Greenlane’s plans to capitalize the business and accelerate the company’s path to profitability. The company sold its interest in VIBES at an enterprise value of approximately 1x VIBES’ trailing 12 months revenue, significantly higher than the implied multiple reflected in the company’s public market capitalization, further validating Greenlane’s belief that its stock remains undervalued under a “sum-of-the-parts” analysis.
Under terms of the sale, Greenlane has retained distribution rights to VIBES products and will remain a strategic partner with the premium rolling paper and apparel company.
“We are pleased to bring in $5.3 million through this sale,” stated Nick Kovacevich, CEO of Greenlane. “We are even more pleased to see one of our brands privately valued at six times more than where our total business is currently being valued in the public markets. We admire the VIBES brand and its premium products and look forward to working strategically with the ownership group to ensure that VIBES continues to expand and succeed in the marketplace. As a distributor, we will continue to support our customers, while immediately improving our balance sheet through the sale of our interest.”
Berner, CEO of VIBES stated: “We are very excited to complete this strategic transition. As a brand builder, we feel that VIBES is just scratching the surface and its future trajectory is extremely compelling. We appreciate everything Greenlane has done as a partner to get VIBES to this level, and we look forward to leveraging their distribution expertise and vast customer network in the future as we continue to make VIBES a staple product on shelves around the globe.”
Meet Greenlane’s CEO Nick Kovacevich and a slew of other cannabis execs, entrepreneurs, CEOs, investors, etc. at the September Benzinga Cannabis Capital Conference, Sept. 13-14 in Chicago. Get your tickets HERE and reserve your spot at the Palmer House Hotel HERE.
Image and article originally from www.benzinga.com. Read the original article here.