Greenlane Q3 sales fall short of estimates, board agrees share buyback of up to $5 million

Published: Nov 8, 2019 7:24 a.m. ET

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Greenlane Holdings Inc. GNLN, -3.55% said Friday it had a net loss of $6.398 million, or 64 cents a share, in the third quarter, wider than the $135,000 loss, or 67 cents a share, posted in the year-earlier period. The maker of vapes and other accessories for the cannabis business said it's adjusted net loss came to $7.5 million, after income of $0.02 million in the year-earlier period. It did not provide an adjusted per-share loss. Sales rose 3% to $44.9 million. The FactSet consensus based on five estimates was for a loss per share of 5 cents and sales of $49.3 million. "Although we experienced some impact to sales of JUUL and other vaporization-related products related to regulatory uncertainty and the reports of acute liquid vaping-related health conditions, our core business remains strong, which going forward will be a larger focus of our strategy," Chief Executive Aaron LoCascio said in a statement. The Centers for Disease Control and Prevention has counted 2,051 Americans that have been sickened with a lung disease caused by vaping, with 39 deaths reported so far. The company said it had $52.5 million in cash at quarter end and debt of $8.2 million. Greenlane said its board has approved a stock buyback of up to $5 million of its own shares. The stock was down 0.8% premarket and has fallen 56% in the last three months, while the ETFMG Alternative Harvest ETF MJ, -5.54% has fallen 25% and the S&P 500 SPX, +0.22% has gained 5%. The stock closed Thursday at $3.91, well below its initial public offering price of $17. The company went public in April.