Greenlane CEO ‘confident’ in strategic direction to create shareholder value

Greenlane Holdings issued a corporate update in a Letter to Shareholders from CEO Barbara Sher, which said in part, “My appointment as CEO of Greenlane in May of this year presented me with an exciting opportunity to utilize my deep knowledge of Greenlane’s operations and customer engagement experience, having served as previously as COO and prior to that as SVP of Customer Experience. My experience, together with a dedicated and supportive team, helped to prepare me for some of the important challenges we faced in a number of areas of our business. I am pleased to report that we have made substantial headway on many, while others are well underway. We expect a number of milestones and initiatives to be achieved in the second half of 2024 which should create a stronger foundation and position the company for increased sales, improved operations and a clearer path to profitability…We see an outstanding opportunity to drive long-term profitable growth and during the second quarter we intensified our strategy to drive high efficiency and productivity by significantly reducing SG&A costs. The ongoing substantial cost reduction progress has been coupled with further simplification and streamlining of the organization. These initiatives have created a new, more focused business approach and simplified organizational structure. Ultimately, we believe this new operating structure will create even greater flexibility, efficiency, and intelligence to unlock value for customers, team members, and stockholders. We are actively working to finalize agreements to restructure our existing debt obligations with a group of our key creditors. These transactions, if consummated, are expected to significantly increase our financial flexibility by reducing our total debt, extending maturities, and lowering near-term cash burn and interest expense as we continue to execute our plan of driving profitability and returning to growth…Today we are embracing a company-wide journey to invest in our areas of greatest potential and accelerate our agility and responsiveness. We have realigned our sales and marketing organization to accelerate growth and market awareness of our increasingly diversified portfolio of high-quality and customizable accessories and lifestyle products. Over the past year, we have been listening to our customers and partners and have seen firsthand what is delivering real value for them and great performance for us. This new structure will allow us to deliver what matters most for all – creating a single and seamless interface into the full world of Greenlane. We will be recruiting more experienced sales professionals in more densely populated areas that are properly incentivized, to drive improved customer engagement, product awareness and growth in revenue. We are also working on ways to reinvigorate our existing partnerships and create new partner opportunities to strengthen and build new synergies together that harness each company’s core competencies, product offerings, and expertise to appeal to a broader customer base. We hope to be able to share more details as these relationships evolve over the coming months. We remain focused on our mission and confident in our strategic direction to create sustainable shareholder value. We remain dedicated to delivering exceptional results through an enhanced robust and resilient organization, which will drive our growth in revenues, earnings, cash flows and shareholder value.”