Greenlane Holdings, Inc. [NASDAQ: GNLN] recently went live on Nasdaq at an opening price of $29. However, there was a sharp drop immediately after the opening where the stock price dipped to $18.00 on April 22. The declines found momentum and GNLN corrected below the 200 EMA but a bounced ensued within the next 24 hours bringing it to this week’s high at $21.80.
At press time, [NASDAQ:GNLN] is trading at $19.72, besides the price is still below the 200 EMA. Similarly, the RSI is in the middle of a sharp decline towards the oversold while the MACD is ranging at -0.13 showing that the stock’s path of least resistance is sideways downwards in the coming sessions.
During the IPO, Greenlane Holdings (GNLN) offloaded its shares at $17 per share. The firm managed to raise $102 million by the end of the IPO. However, since the launch on Nasdaq, the stock has remained very volatile as seen above. Therefore, Stockwatch247 thought it is important to dig deeper in the company’s finances from its IPO filings.
Last year Greenlane Holdings reported revenues of $179 million. Notably, the firm’s revenues doubled in the same year amid the broad-based growth in revenue among cannabis companies. In spite of the increasing revenue, profits have been an uphill task for most of the cannabis-based firms apart from Charlotte’s Web Holdings (CWBHF) which has been unique to post profits.
Key Financial Measures
In addition to the revenue, Greenlane Holdings achieved a gross profit margin of 20% in 2018 in comparison to 23.3% posted in 2017. In 2018 the firm reported an adjusted EBITDA of $4.1 million in comparison to $3.50 million in 2017. Amid the increasing adjusted EBITDA, Greenlane Holdings reported a net loss of $5.9 million in 2018 in comparison to a net profit of $2.3 million posted in 2017.
The IPO filings said that the firm’s interest expense went up from roughly $270,000 to $3.2 million last year in turn dragging the net income. Moreover, Greenlane experienced a depreciation and amortization expense which double to around $1.5 million in 2018 while legal expenses reported were at $1.0 million following the transition to a public company. There was deterioration of the company’s cash flow at -$13.6 million in comparison to $3.5 million in 2017.
Moving away from the financials Greenlane CEO Aaron LoCascio recently told Yahoo Finance that its vaporization technic has a huge potential for growth in spite of complaints that the devices were not working properly.
“I’ve been a huge fan of vaporization technology since founding of the company in 2005. And there has been tremendous growth in the category since inception and our outlook for vaporization continues to be very strong,” said LoCascio.
While commenting on the increasing number of cannabinoids LoCascio said:
“So, there is a growing number of studies showing very positive results. Keep in mind that not only do we take advantage of the $150 billion estimated global cannabis market but we are also tapping into the $7 billion liquid nicotine market and the $22 billion estimated CBD market.