Vaping products supplier Greenlane looks to tap equity markets

Firm files for initial public offering with US regulators in response to mounting investor interest

Greenlane Holdings made net sales of $178.9m in 2018, about twice that of the year before. File photograph: Getty

Greenlane Holdings made net sales of $178.9m in 2018, about twice that of the year before. File photograph: Getty

 

Vaping products supplier Greenlane Holdings filed for an initial public offering with US regulators on Wednesday.

Greenlane’s move comes against the backdrop of growing investor interest and rising regulatory scrutiny into the e-cigarette industry. The company sells vaping products and accessories to more than 6,600 independent smoke shops, regional retail stores and a number of licensed cannabis cultivators, processors and dispensaries. It also runs two online stores in north America which sell directly to consumers.

Greenlane’s move to tap equity markets comes as traditional tobacco companies make major investments into e-cigarettes. Marlboro maker Altria Group this year bought a 35 per cent stake in Juul Labs for $12.8 billion.

Meanwhile, regulatory scrutiny is also increasing, particularly into the sale and advertisement of flavoured vaping products to minors.

Greenlane made net sales of $178.9 million in 2018, about twice the sales in the year before. It reported an annual net loss of $5.9 million, compared with a $2.3 million profit in 2017. – Reuters