CGC stock and GNLN stock are gaining solid momentum on Thursday after Greenlane Holdings Inc (NASDAQ:GNLN) announced a partnership with Canopy Growth (TSX:WEED) (NYSE:CGC) for the exclusive distribution of Storz & Bickel vaporizers.
Canopy Growth is the biggest cannabis company in the world at the moment and over the past year or so, it has grown impressively. That being said, such large companies need to enter into intelligent partnerships in order to keep growing, and that is what Canopy seems to have done with its latest agreement with Greenlane Holdings Inc.
The company announced that it has tied up with cannabis accessories manufacturer Greenlane to distribute Storz & Bickel Vaporizers, manufactured by the German company of the same name. Storz & Bickel first manufactured this vaporizer, known as Volcano, back in 2000 but over the course of the past 19 years, the company has continued to upgrade the product. In December last year, Canopy Growth acquired Storz & Bickel.
Florida-based Greenlane is involved in the distribution of the vaporizers in the United States and will now be providing its services to Canopy Growth as well.
After the announcement of the distribution deal with Canopy Growth today, GNLN stock rose by 11% at 8.87. CGC stock climbed 2% and is now trading at $32.85.
Peter Popplewell, who is the Chief Executive Officer at Canopy Growth, expressed his sentiments about the deal in a press release. He said, “We are excited to launch the new Volcano Hybrid through this partnership and look forward to introducing new high tech vaporizers to the market as we continue to leverage our extensive R&D and commercialization efforts that will set a new bar in terms of quality, functionality and consumer safety.”
This is a highly significant deal marking the collaboration between the two companies, which have become important players in their own industries. Greenlane has as many as 11,000 retail units as of now, and in addition to that, it operates licensed dispensaries as well. The company listed on NASDAQ only in April this year. It's performed excellently since and GNLN stock rose by as much as 35% on the day it listed.
What do you think about CGC stock after today's development?
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