Florida-based company, Greenlane Holdings, made a public debut ahead of Zoom (ZM) and Pinterest (PINS), on April 17th, 2018, representing one of the rare companies operating in the cannabis industry in the US that went public.
Although not the only one, Greenlane is among IPO cannabis pioneers, while the company doesn’t actually grow marijuana, but is distributing vaporizer products to marijuana stores and shops.
Greenlane might not be close to the big players such as Uber or Zoom, however, it might be interesting to investors who are looking for ways to invest in the sector, said to be developing in the US and Canada with regulating the industry of cannabis.
Greenlane was approved for a listing on Nasdaq, where the shares opened at 17$ share price, raising 102 million dollars with the initial public offer.
While spokesman from Greenlane Holdings described the company as “the first US-based cannabis company to get listed on Nasdaq”, there are more companies in the industry that went public on New York Stock Exchange, such as Turning Point Brands Inc. and Innovative Industrial Properties Inc.
Greenlane is trading under the thicker GNLN, up by around 24% since its initial sale.
Greenlane Owns a Major Chance of Getting Approved by the US Government
The US government prohibits the companies based in the US that are working on growing and cultivating cannabis strains, to sell stocks as publicly listed companies.
As Greenlane is not growing marijuana, but supplying cannabis shops with vaporizer products, the company is likely to be approved.
However, Canadian cannabis companies such as Aurora Cannabis Inc, managed to get a listing on Nasdaq as recreational marijuana operations are located in Canada and not the US.
Additionally, what you need to know about Greenlane shares is that the company is listed as “controlled”, which means that the company’s co-founders control 80% of the voting power.