March 20, 2019 / 1:40 PM / a month ago

U.S. vaping products supplier Greenlane files for IPO

(Reuters) - Vaping products supplier Greenlane Holdings Inc filed for an initial public offering with U.S. regulators on Wednesday, in the backdrop of both growing investor interest and rising regulatory scrutiny into the e-cigarette industry.

Greenlane sells vaping products and accessories to over 6,600 independent smoke shops, regional retail stores and a number of licensed cannabis cultivators, processors and dispensaries. It also runs two online stores in North America which sell directly to consumers.

Greenlane’s move to tap equity markets comes as traditional tobacco companies make major investments into e-cigarettes. Marlboro maker Altria Group this year bought a 35 percent stake in Juul Labs for $12.8 billion.

Meanwhile, regulatory scrutiny is also increasing, particularly into the sale and advertisement of flavored vaping products to minors.

Greenlane made net sales of $178.9 million in 2018, about twice the sales in the year before. It reported an annual net loss of $5.9 million, compared with a $2.3 million profit in 2017.

The Boca Raton, Florida-headquartered company intends to list itself on the Nasdaq under the symbol “GNLN,” it said in a filing with the U.S. Securities and Exchange Commission.

Greenlane set a placeholder amount of $92 million to indicate the size of the IPO. The final size of the IPO could be different.

Reporting by Diptendu Lahiri in Bengaluru

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