Greenlane Holdings Inc . (NASDAQ:GNLN) stock has touched a 52-week low, with shares falling to $1.7, marking a significant downturn for the company. With a market capitalization of just $2.38 million and a concerning InvestingPro Financial Health score of 0.9 (labeled as "WEAK"), investors face heightened uncertainty. This latest price level reflects a stark contrast to the stock's performance over the past year, with Greenlane Holdings experiencing a substantial 71.79% decline. The company's revenue has contracted by 72% in the last twelve months, though InvestingPro analysis suggests the stock may be undervalued at current levels, trading at just 0.26 times book value. Investors are closely monitoring the company's trajectory as it navigates through a challenging period, with market sentiment appearing cautious amidst the stock's latest dip to this year-long low point. (Discover 14 additional exclusive ProTips and comprehensive financial metrics with InvestingPro.)
In other recent news, Greenlane Holdings has announced a series of significant developments. The company has replaced its previous independent auditor, Marcum LLP, with PKF O’Connor Davies amid ongoing internal control challenges. Greenlane has also entered into distribution partnerships with Veriteque USA, Inc., and Safety Strips Tech Corp., expanding its product offerings with various field test kits.
To enhance its financial position, Greenlane has restructured its debt, reducing it by approximately $617,000, and extended its maturity. The company also issued a $3.2 million convertible note to Cobra Alternative Strategies, providing immediate capital with potential for equity conversion. Notably, Greenlane has successfully reduced its U.S. vendor accounts payable by nearly $4.4 million.
The company has plans to raise $6.5 million for working capital and general corporate purposes by issuing over 2.3 million units, with Aegis Capital Corp. serving as the exclusive placement agent. Demonstrating confidence in the company's future, CEO Barbara Sher recently purchased 12,500 common shares. Lastly, to meet Nasdaq's minimum bid price requirement, Greenlane announced a one-for-11 reverse stock split of its Class A common stock.
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