Greenlane Holdings announces approval from the US Postal Service to ship cannabis vaporizers and accessories products to compliant businesses; company's infrastructure has met strict requirements of Prevent All Cigarette Trafficking Act

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BOCA RATON, Florida , January 12, 2022 (press release) –

  • Company's Strong Compliance Infrastructure and Technical Know-How Enable Successful Navigation of the PACT ACT
  • Over 97% of Company's Shipments Are Now Eligible for Shipment Using Major Carriers or Freight

Greenlane Holdings, Inc. ("Greenlane" or "the Company") (NASDAQ:GNLN), a global house of brands and one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today announced that it has received approval from the United States Postal Service (the "USPS") for a business and regulatory exception to the Prevent All Cigarette Trafficking Act ("PACT Act"), allowing Greenlane to ship vaporizers and accessories classified as electronic nicotine delivery systems ("ENDS") products to other compliant businesses. With this new approval, over 97% of total annual sales will be eligible for shipment by freight, USPS, or major carriers, and the PACT Act's impact will be reduced to less than 3% of annual sales.

The recently amended PACT Act, among other provisions, bans the mailing of ENDS products via the USPS, and has led to other shipping restrictions by private carriers. Although this law was intended to impact nicotine vaporization devices, it also swept in other devices used for vaporization of liquids and oils, impacting the hemp and cannabis industries. With the USPS's approval, however, the Company can now bring shipments containing such products back to the USPS, reducing costs and improving the customer experience. The approval also enables the Company to offer its logistics capabilities to distribute other businesses' ENDS products.

"We are thrilled to secure this approval from USPS to ship ENDS products business to business," said Nick Kovacevich, CEO of Greenlane. "We continue to believe that in a highly regulated industry-which is only going to be subject to stricter regulation over time-that companies with significant size, scale, resources, and robust compliance programs will be able to successfully comply with regulatory requirements. As evidenced by the approval, Greenlane is well-positioned as a Nasdaq-listed market leader with a demonstrated history of compliance to navigate this ever-changing regulatory landscape and continue accelerating our business."

Kovacevich continued: "Although we will continue to focus on selling our own proprietary in-house brands, we proudly remain a strategic purveyor and distributor of leading third-party brands that are complementary to our business and provide value for our customers. In fact, many companies have already begun to reach out with the hopes of leveraging our structure, processes, network, and compliance position. Our message to businesses is that ‘if you are having issues shipping via the PACT Act and would like to explore engaging Greenlane as a distribution partner, please reach out.' We welcome inquiries from all customers whose supply chains have been disrupted due to the PACT Act."

Businesses that would like to learn more about partnering with Greenlane to distribute ENDS products are encouraged to contact the Company's Director of Business Transformation and Integration Management Office, Matt Tolnick, at or 310-869-5733.

About Greenlane Holdings, Inc.

Greenlane is the premier global platform for the development and distribution of premium cannabis accessories, packaging, vape solutions, and lifestyle products. We operate as a powerful house of brands, third-party brand accelerator, and omni-channel distribution platform, providing unparalleled product quality, customer service, compliance knowledge, and operations and logistics to accelerate our customers' growth.

Founded in 2005, Greenlane serves a diverse and expansive customer base with more than 8,000 retail locations, including licensed cannabis dispensaries, smoke shops, and specialty retailers. As a pioneer in the cannabis space, Greenlane is the partner of choice for many of the industry's leading multi-state operators, licensed producers, and brands, including PAX Labs, Storz & Bickel (Canopy-owned), Cookies, Grenco Science, and CCELL.

We proudly own and operate a diverse brand portfolio including DaVinci vaporizers, Pollen Gear™, the K.Haring Glass Collection by Higher Standards, Marley Natural™, and VIBES™ rolling papers. Higher Standards, Greenlane's flagship brand, offers both a high-end product line and immersive retail experience with ground-breaking stores in New York City's Chelsea Market and Malibu, California. Greenlane also owns and operates and, two industry-leading, direct-to-consumer e-commerce platforms in North America and Europe respectively.

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Forward Looking Statements

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. These forward-looking statements include, among others, statements relating: to the current and future performance of the Company's business, including the impact of the PACT Act business and regulatory exception granted by the USPS, anticipated improvements in overall customer experience and shipping cost reductions; the Company's regulatory compliance infrastructure and outreach efforts to other businesses impacted by PACT Act compliance; and the impacts of acquisitions and other similar transactions. Actual results or performance may also be impacted by, among other factors: the impact of the ongoing COVID-19 pandemic on the Company's business; growth in demand for the Company's products; growth in the market for cannabis and nicotine; the Company's marketing and commercialization efforts; and the Company's financial outlook and expectations. For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, please review the information under the heading "Risk Factors" included in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2020, the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021, and the Company's other filings with the SEC, which are accessible on the SEC's website at Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to Greenlane on the date hereof. Greenlane undertakes no duty to update this information unless required by law.

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