Greenlane Holdings, Inc. GNLN has entered into a distribution agreement with Universal Distribution LATAM LLC to distribute its proprietary portfolio of house brands in Latin America.
Universal Distribution has been granted the non-exclusive right to sell certain third-party brand products as part of the agreement.
Universal Distribution has committed to the following sales targets within the first three years of the agreement to maintain exclusivity, consisting of both Greenlane Brands and select high-velocity third-party brand products:
In year 1: at least 1.5 million of Greenlane Brands and third-party products.
Year 2: at least $1.9 million of Greenlane Brands and third-party products.
Year 3: at least $2.4 million of Greenlane Brands and third-party products.
This partnership is a major milestone in the company's history as we expand into the promising Latin America market. Unlike plant-touching operators, Greenlane is not subject to the same global trade restrictions and can ship its products in a light manner, enabling us to scale faster and wider, and build our brands in these emerging markets ahead of legalization, said Nick Kovacevich, CEO of Greenlane. We can expand the reach of our products by relying on the resources of Universal Distribution, who know and understands the local markets, without having to invest considerable capital to build our own operations in these markets. This partnership is a great way to execute our strategy of scaling our Greenlane Brands, and it sets the stage for future deals in Latin America and beyond, as we look to expand our business globally in a profitable manner. Guillermo Martin, president of Universal Distribution, said: We are thrilled to partner with Greenlane to bring its highly sought-after portfolio of brands to the burgeoning Latin America market. With this one-of-a-kind partnership, we believe that we are pushing the boundaries of what's possible for cannabis accessories in the multi-billion dollar Latin America market. EXCLUSIVE: How Much Competition Will Cannabis Companies Face From Big Tobacco And Alcohol?
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