SCHEDULE 13G/A: Empery Asset Management Discloses 9.99% Passive Stake in Greenlane Holdings

Empery Asset Management, along with its managing members Ryan M. Lane and Martin D. Hoe, has filed an amended Schedule 13G disclosing a 9.99% beneficial ownership stake in Greenlane Holdings, Inc. as of December 31, 2024.

Summary

• Empery Asset Management, LP, and its managing members Ryan M. Lane and Martin D. Hoe, collectively referred to as 'Reporting Persons,' have reported beneficial ownership of Greenlane Holdings, Inc. Common Stock.
• As of December 31, 2024, the Reporting Persons beneficially own 219,687 shares of Greenlane Holdings Common Stock.
• This ownership represents 9.99% of the outstanding class of Greenlane Holdings Common Stock.
• The reported beneficial ownership includes 66,951 shares of Common Stock issuable upon conversion of convertible notes ('Notes') and exercise of warrants ('Warrants').
• The calculation of the percentage is based on an aggregate of 2,132,124 shares of Common Stock, which includes 1,982,124 shares outstanding as of November 25, 2024, and an additional 150,000 shares issued upon warrant exercises between November 25, 2024, and December 31, 2024.
• The Reporting Persons are subject to 'Blockers' which prevent them from converting Notes or exercising Warrants if it would result in beneficial ownership exceeding 9.99% of the outstanding Common Stock.
• Due to these Blockers, the Reporting Persons were unable to convert all Notes or exercise all Warrants as of the filing event date.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While a 13G is a passive filing, the disclosure of a significant, near-10% stake by a reputable asset manager like Empery Asset Management can be interpreted as a vote of confidence in Greenlane Holdings, Inc., especially as an amendment confirming continued or adjusted holding.

Positives

• A significant passive stake by an institutional investor like Empery Asset Management may signal confidence in Greenlane Holdings' long-term prospects.
• The continued holding of a near-10% stake by a professional asset manager can be viewed positively by other investors.

Risks

• The 'Blockers' limit the Reporting Persons' ability to increase their beneficial ownership beyond 9.99%, potentially restricting their upside from full conversion/exercise of Notes and Warrants if the stock price were to significantly increase.

Future Outlook

This Schedule 13G/A filing is a disclosure of passive beneficial ownership and does not contain forward-looking statements or guidance from Greenlane Holdings, Inc. or the Reporting Persons regarding future performance or strategic direction.

Industry Context

Greenlane Holdings, Inc. operates in the ancillary cannabis industry, providing vaporization products, consumption accessories, and other related products. The disclosure of a significant passive stake by an asset manager like Empery Asset Management indicates institutional interest in companies within this sector, which continues to evolve with regulatory changes and market dynamics.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may instill confidence and potentially attract further investor interest, positively impacting share price perception.
• Company Management: Awareness of a large passive investor may influence strategic decisions, though the investor explicitly states no intent to influence control.

Key Dates

Keywords

Greenlane Holdings, Empery Asset Management, Schedule 13G, Beneficial Ownership, Common Stock, Convertible Notes, Warrants, Institutional Investment, Passive Investment, SEC Filing