Greenlane Holdings Stock Soars 27% On $110M Crypto Treasury Initiative With Berachain

• The private investment in a public equity transaction is being led by Polychain Capital with participation from a group of investors, including Blockchain.com.
• The net proceeds of the transaction will be used to implement a digital asset treasury strategy and acquire BERA, the native cryptocurrency of the Berachain blockchain.
• Greenlane Holdings said that BERA will serve as the company's primary treasury reserve asset.

Greenlane Holdings (GNLN) shares surged nearly 27% in premarket trading on Monday after the company announced a $110 million private placement to initiate the Berachain Cryptocurrency treasury strategy.

The firm said that the private investment in public equity transaction is being led by Polychain Capital with participation from a group of investors, including Blockchain.com, Kraken, North Rock Digital, CitizenX, dao5, and more.

What Is The Aim Of The Private Placement?

Greenlane Holdings said it intends to use the net proceeds of the transaction to implement a digital asset treasury strategy and acquire BERA, the native cryptocurrency of the Berachain blockchain. It also intends to use it for working capital and general corporate purposes.

The company added that BERA will serve as the company's primary treasury reserve asset. BERA is the fee token of Berachain, the first Layer 1 blockchain powered by Proof of Liquidity to help businesses scale and power on-chain economies.

What Does The Transaction Include?

Greenlane Holdings said that the transaction consists of the sale of Greenlane's Class A common stock, and pre-funded warrants to purchase shares, at a purchase price of $3.84 per share and $3.83 per pre-funded warrant.

The private investment in public equity is composed of about $50 million of cash or cash equivalents, and about $60 million of BERA tokens. The company said the transaction is expected to close on or about October 23.

The firm said its common stock will continue to trade on the Nasdaq Capital Market under the ticker “GNLN” with the updated treasury strategy effective immediately following the closing of the transaction. Greenlane also noted that it will continue operating its distribution business. 

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