Greenlane Holdings, Inc. said Monday it has entered into agreements for a $110 million private investment in public equity (PIPE) led by Polychain Capital, with participation from Blockchain.com, Kraken, North Rock Digital, CitizenX, dao5, and other investors.
The transaction, which is expected to close around Oct. 23 pending customary conditions, involves the sale of Greenlane’s Class A common stock and pre-funded warrants priced at $3.84 per share and $3.83 per warrant, respectively. Approximately $50 million of the total investment will be funded in cash or cash equivalents, while about $60 million will be contributed in BERA tokens, the native cryptocurrency of the Berachain blockchain.
Digital Asset Treasury Strategy
Greenlane said it plans to use proceeds from the PIPE to establish a digital asset treasury strategy and acquire BERA tokens for use as its primary reserve asset. The company said BERA, which powers transactions and fees on the Berachain network, will anchor its new treasury operations.
The company expects to purchase BERA through open-market and over-the-counter transactions, while maintaining its existing distribution business. Greenlane said it will provide periodic updates on its digital asset holdings and performance to ensure transparency for investors and the BERA community.
Jonathan Ip, general counsel at the Berachain Foundation, said the partnership reflects Berachain’s broader engagement with institutional participants and capital markets. He said Greenlane’s experience in both traditional and digital finance could help expand BERA’s presence among public companies.
Greenlane Holdings’ Leadership and Governance
Following the closing of the transaction, Greenlane plans to strengthen its management team with new appointments, including incoming director and chairman Bruce Linton and director Billy Levy. Linton previously led Canopy Growth Corporation to a multibillion-dollar valuation, while Levy is known for co-founding Virgin Gaming in collaboration with Richard Branson.
Linton said BERA’s incentive model, based on a “Proof of Liquidity” mechanism, represents a new approach to blockchain economics and provides an opportunity for institutional engagement. Greenlane’s shares will continue to trade on the Nasdaq Capital Market under the ticker symbol GNLN, and the company said its updated treasury strategy will take effect immediately following the transaction’s completion.
Aegis Capital Corp. served as the exclusive placement agent for the offering. Legal counsel was provided by Kaufman & Canoles, P.C. for Aegis Capital, Sichenzia Ross Ference Carmel LLP for Greenlane, and Paul Hastings LLP for Polychain Capital.
