Huge merger coming, HT will become #2 in US in accesories sales.
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KushCo (OTC: KSHB) is merging with Greenlane (NASDAQ: GNLN).
KushCo is the larger company – with a $162 million market value. Meanwhile, Greenlane has a market cap of just $69 million.
The combined company will sport a $231 million value – based upon the closing price prior to the announcement.
The merger will create the biggest seller of " accessories " for cannabis and CBD. This includes vaping products that are sold in dispensaries across the U.S.
Technically, Greenlane is acquiring KushCo. And Greenlane shareholders will own a slight majority of the combined company.
Based on last year’s results – the combined company expects $250 million in annual sales. The merger is expected to create $15 - $20 million in annual cost savings.
Meanwhile, the combined company is currently trading at around 1x sales. And that may make this an attractive stock IF the company can achieve cost savings.
https://www.globenewswire.com/news-release/2021/03/31/2202155/0/en/Greenlane-and-KushCo-Announce-Transformative-Merger-Creating-the-Leading-Ancillary-Cannabis-Company-and-House-of-Brands.html