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Greenlane Holdings Gives You Exposure to the Cannabis Sector


Apr. 24 2019, Updated 10:02 a.m. ET

Greenlane Holdings

Last week, Greenlane Holdings (GNLN) was listed in the US markets. The company is a play on the cannabis industry. Greenlane Holding is an “ancillary play.” The company isn’t involved in cannabis cultivation.

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Business model

Looking at Greenlane Holdings’ SEC filings, it describes itself as a “distributor of premium vaporization products and consumption accessories.” The company has a network of “over 6,600 independent smoke shops and regional retail chain stores.” In an interview with Yahoo! Finance, Greenlane CEO Aaron LoCascio said the company is competing in the cannabis market, liquid nicotine market, and the CBD market. He also sounded positive about vaping. Greenlane Holdings owns VaporNation.com and VapeWorld.com.

Greenlane Holdings uses B2C (business to consumer) and B2B (business to business) channels to market its products. Last year, the B2B segment represented 79.5% of Greenlane Holdings’ revenues, while the B2C segment represented 3.2% of its revenues. In 2018, 14.5% of the company’s revenues came from product sales through third-party websites, supply and packaging services, and other services.

Revenue base

Overall, the company has a diversified revenue base. Last year, Greenlane Holdings’ top ten customers accounted for 13.0% of its net sales. The company’s biggest customer accounted for 2.4% of its revenues. Greenlane Holdings’ revenue concentration increased from 2017 when its top ten customers accounted for 10.9% of its total revenues.

There was a new cannabis ETF listing last week. The AdvisorShares Pure Cannabis ETF started trading on April 18 under the ticker YOLO. The Horizons Marijuana Life Sciences ETF (HMMJ) and the ETFMG Alternate Harvest ETF (MJ) are two of the other ETFs that offer exposure to the fast-growing cannabis industry.


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