Restructuring Efforts: Greenlane Holdings, Inc. Signs Agreements to Reduce Senior Debt

Greenlane Holdings, Inc. (NASDAQ: GNLN) recently announced entering into a series of agreements aimed at restructuring its senior debt. The agreements, finalized on October 29, 2024, involve the Company and its senior lenders strategizing to extend the debt maturity while reducing the debt amount outstanding.

One of the key agreements involved the Exchange Agreement, where Greenlane entered into an agreement with its Senior Subordinated Lender. This exchange involved swapping $4,617,307 of debt, initially owed to Agile Capital Funding LLC and Cedar Advance LLC, for new Senior Subordinated Notes worth $4,000,000 due one year from issuance. This move effectively decreased the outstanding indebtedness by about $617,000. Moreover, the Exchange Note resulting from this agreement is convertible at the holder’s discretion at $3.17 per share. Additionally, 1,261,830 five-year warrants were issued as part of this agreement with an exercise price of $3.04 per share.

As per the terms of the Exchange Agreement, warrants were also promised to the Holders, initially priced at $3.04, exercisable 180 days post-issuance. These Exchange Inducement Warrants were specifically issued to incentivize holders to exercise some or all of their pre-existing warrants during a specified inducement period.

Further, the Company made arrangements with Aegis Capital Corp. to be its exclusive placement agent for these transactions. While Aegis would receive a 4.0% cash fee from the aggregate gross proceeds of Existing Warrant exercises, no fees were payable to them for the debt restructuring process.

In a related move, Greenlane also engaged in a First Amendment to Amended and Restated Secured Promissory Note with Cobra Alternative Capital Strategies LLC on the same date. This amendment extended the Maturity Date of the senior promissory note, originally due on May 1, 2024, to October 29, 2025. As part of this agreement, Cobra obtained 500,000 five-year warrants with an exercise price of $3.04 per share, akin to the Exchange Warrants.

Overall, the agreements entail a complex restructuring strategy to evolve the debt landscape for Greenlane Holdings, Inc. The Company expects to leverage these arrangements to enhance its financial position and optimize its capital structure moving forward.

The detailed descriptions of the agreements and provisions are filed as exhibits alongside the SEC filing, providing full transparency regarding the restructuring measures undertaken by Greenlane Holdings, Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Greenlane’s 8K filing here.

About Greenlane

Greenlane Holdings, Inc develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise.