Greenlane Holdings, Inc. (Nasdaq: GNLN), a company focused on a Berachain-based Digital Asset Treasury, announced it will implement a 1-for-8 reverse stock split of its common stock, effective as of 12:01 a.m. Eastern Time on April 6, 2026. The move is designed to elevate the per-share trading price to meet Nasdaq's continued listing requirements and enhance the stock's appeal to institutional and retail investors.
The reverse stock split will reduce the number of issued and outstanding shares from approximately 5,039,563 to about 629,945. No fractional shares will be issued; shareholders entitled to fractional shares will receive a cash payment based on the closing price on April 2, 2026. The split also applies to outstanding warrants and stock options, with proportional adjustments to exercise prices.
Greenlane's stockholders approved the reverse split at a special meeting on March 25, 2026, granting the board discretion to choose a ratio between 1-for-5 and 1-for-15. The board subsequently selected the 1-for-8 ratio. The authorized number of shares remains unchanged. Equiniti Trust Company, LLC will serve as exchange agent; holders in book-entry or brokerage accounts need not take action.
The reverse split aims to maintain compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share. Greenlane's stock has traded below $1 for an extended period, risking delisting. By reducing the share count, the company hopes to boost the stock price proportionally, though market forces may affect the actual outcome.
Greenlane, originally a cannabis accessories distributor, has pivoted to a digital asset treasury strategy focused on BERA, the native token of the Berachain blockchain. The company continues a reduced-scale wholesale business via a drop-ship model. Berachain is an EVM-compatible layer-1 blockchain using a Proof of Liquidity consensus mechanism, as detailed on berachain.com.
The reverse stock split is a common tactic for companies facing low share prices, but it does not change the company's underlying value. Investors should consider the risks outlined in Greenlane's SEC filings, including its Annual Report on Form 10-K and subsequent reports. The company cautions that forward-looking statements regarding Nasdaq compliance and market perception involve uncertainties.
