About Greenlane Holdings

Greenlane Holdings, Inc. (Greenlane) is a global platform for the development and distribution of premium cannabis accessories, vape devices, and lifestyle products. In 2021, the company completed several transformative acquisitions, including the acquisition of two proprietary house brands, EYCE ('Eyce') and DaVinci ('DaVinci'), along with a larger merger with KushCo Holdings, Inc., adding a significant industrial line of business to the Greenlane platform. These acquisitions strengthened the company's leading position as a consumer ancillary products house-of-brands business by adding two established brands to the company's portfolio (Eyce and DaVinci), and significantly expanded the company's customer network, bringing strategic relationships with leading cannabis multi-state-operators ('MSOs'), cannabis single-state operators ('SSOs'), and Canadian licensed-producers ('LPs'). Greenlane provides a wide array of consumer ancillary products and industrial ancillary products to thousands of cannabis producers, processors, brands, and retailers ('Cannabis Operators'), in addition to specialty retailers, smoke shops, head shops, convenience stores, and consumers directly through the company's own proprietary web stores and large online marketplaces, such as Amazon. The company is developing a portfolio of its own proprietary brands (the 'Greenlane Brands') that will, over time, create long-term value for the company's customers and shareholders. The company's wholly-owned Greenlane Brands includes its recently launched more affordable product line - Groove, the company's silicone pipes and accessories line - Eyce, the company's premium vaporizer brand - DaVinci, the company's premium smoke shop and ancillary product brand - Higher Standards, and the company's child-resistant packaging brand - Pollen Gear. The company also has category exclusive licenses for the premium Marley Natural branded products, as well as the Keith Haring branded products. The Greenlane Brands, along with a curated set of third-party products, are offered to customers through the company's proprietary, owned and operated e-commerce platforms, which include Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. These platforms allow the company to reach customers directly with helpful resources and a seamless purchasing experience. The company merchandises vaporizers, packaging, and other ancillary products in the United States, Canada, Europe, and Latin America. The company distributes products to retailers through wholesale operations and distributes products to consumers through e-commerce activities and the company's flagship Higher Standards store in New York City's famed Chelsea Market. The company operates its own distribution centers in the United States, while also utilizing third-party logistics ('3PL') locations in the United States, Canada, and Europe. The company has made tremendous progress consolidating and streamlining its warehouse and distribution operations following the company's acquisitions in 2021, and the company looks forward to further optimization of the company's footprint in 2023. The company manages its business in two different, but complementary, business segments. The first is the Consumer Goods segment, which focuses on serving consumers across wholesale, retail, and e-commerce operations-offering both the company's Greenlane Brands, as well as ancillary products and accessories, from select leading third-party brands, such as Storz and Bickel, Grenco Science, PAX, Cookies and more. The Consumer Goods segment forms a central part of the company's growth strategy, especially as it relates to scaling the company's own portfolio of higher-margin proprietary owned brands. In addition to the company's Consumer Goods segment, the company has its Industrial Goods segment, which focuses on serving Cannabis Operators by providing ancillary products essential to their daily operations and growth, such as packaging and vaporization solutions, including the company's Greenlane Brand Pollen Gear. Consumers of cannabis, herbs, flavored compounds, aromatherapy oils, and nicotine require the types of products the company distributes, including vaporizers, pipes, rolling papers and packaging. Producers of cannabis products are able to source compliant packaging, vape hardware, and other products needed in the manufacturing and distribution stages of the supply chain. The company distributes the 'picks & shovels' for these rapidly-growing industries and producers. As the world of cannabis and its respective aesthetic continues to expand, the company strives to keep its product mix relevant and popular; offering an array of products from vaporizers, grinders, pipes and other inhalation devices to storage solutions, to rolling papers and even apparel lines. There are two prevalent types of inhalation methods for cannabis and nicotine: combustion and vaporization. Vaporizers are devices that heat materials to temperatures below the point of combustion, extracting the flavors, aromas and effects of dry herbs and concentrates in the form of vapor. Measured by revenue, vaporizers are the company's largest product category. Vaporizers continue to increase in popularity and as a preferred method of consumption among a variety of demographics of consumers. They have elements that are designed to quickly heat material, causing vaporization to occur without the carbon dioxide that is typically generated through combustion. The vapor byproduct is then immediately inhaled through the mouthpiece on the device itself, or through a hose or an inflatable bag. Vaporizers can heat a variety of dry materials, viscous liquids and waxes, and provide a convenient way for users to consume the active ingredient such as tobacco, nicotine extracts, legal herbs, hemp-derived CBD, aromatherapy oils, cannabis, and propylene glycol and glycerin blends. Vaporization Technology: Consumers have a wide array of vaporization devices at their disposal, which can be broadly categorized into two primary categories: desktop and portable vaporizers. The company's vaporizer portfolio spans just shy of 200 distinct products across 12 brands. Desktop Vaporizers: Vaporizers were first developed as desktop models that were powered through traditional electric power sources. Desktop vaporizers are capable of heating the material to a more precise temperature choice determined by the consumer or as advised by a health practitioner. Portable Vaporizers: With the development of lithium batteries, vaporizers have now become portable. Technological advances are resulting in lighter, sleeker, and more visually-appealing units that are capable of quickly heating material to the user's desired temperature setting. Portable vaporizers, of which vape pens are a sub-set, are differentiated by many features, including output, battery life, recharge time, material, capacity, and design. Other Methods of Consumption: In addition to vaporizers, consumers have a wide array of methods of consumption at their disposal, including, hand pipes, water pipes, rolling papers, and oral and topical delivery methods. Hand and Water Pipes: The company offers a diverse portfolio of over 200 hand and water pipes across five brands, including products within the company's Greenlane Brands. Many display iconic, licensed logos and artwork, as pipes have grown into an artistic expression and are available in countless creative forms and functionality. Hand pipes are small, portable and simple to use, and function by trapping the smoke produced from burning materials. Water pipes include large table-top models, bubblers and rigs; and incorporate the cooling effects of water to the burning materials before inhalation. Rolling Papers: Rolling papers are a traditional consumption method used to smoke dried plant material in a 'roll-your-own' application. These include papers, cones and wraps. The company's rolling papers category comprised over 100 products across two unique brands, not including accessories, such as rolling trays or tips. Strategies The company's core strategies include planning to accelerate path to profitability and capitalize the business; developing a world-class portfolio of proprietary brands; USPS PACT Act Exemption; building upon strong customer and supplier relationships to expand organically; and pursuing value-enhancing strategic acquisitions. Seasonality The company has historically experienced only moderate seasonality in the company's Consumer Goods business, particularly during the fourth quarter (year ended December 2022), which coincides with Cyber Monday (the first Monday after Thanksgiving, when online retailers typically offer holiday discounts), and as the company's customers build up their inventories in anticipation of the holiday season and for which the company has related promotional marketing campaigns. Trademarks The company owns a number of registered trademarks and service marks, including without limitation, trademarks in the relevant classes of goods for Greenlane, Higher Standards, Aerospaced, Groove, Pollen Gear, Eyce, and most recently DaVinci. The company also licenses certain trademarks and other intellectual property, most notably those associated with the company's Marley Natural and Keith Haring brands. Competition The company's primary e-commerce website, Vapor.com. History Greenlane Holdings, Inc. was founded in 2005. The company, a Delaware corporation, was incorporated in 2018.