Greenlane Holdings has announced its approval from the United States Postal Service (USPS) for a business and regulatory exception to the Prevent All Cigarette Trafficking (PACT) Act, allowing the company to ship electronic nicotine delivery systems (ENDS) products to other compliant businesses.
With the approval, over 97 percent of total annual sales will be eligible for shipment by freight, USPS, or major carriers, and the PACT Act’s impact will be reduced to less than 3 percent of annual sales, according to a press release. The approval also enables Greenlane to offer its logistics capabilities to distribute other businesses’ ENDS products.
“We are thrilled to secure this approval from USPS to ship ENDS products business to business,” said Nick Kovacevich, CEO of Greenlane. “We continue to believe that in a highly regulated industry-which is only going to be subject to stricter regulation over time-that companies with significant size, scale, resources, and robust compliance programs will be able to successfully comply with regulatory requirements. As evidenced by the approval, Greenlane is well-positioned as a Nasdaq-listed market leader with a demonstrated history of compliance to navigate this ever-changing regulatory landscape and continue accelerating our business.”
Kovacevich said the company will continue to focus on selling its own proprietary in-house brands, and remain a strategic purveyor and distributor of third-party brands that are complementary to its business and provide value for its customers. “In fact, many companies have already begun to reach out with the hopes of leveraging our structure, processes, network, and compliance position,” he said. “Our message to businesses is that ‘if you are having issues shipping via the PACT Act and would like to explore engaging Greenlane as a distribution partner, please reach out.’ We welcome inquiries from all customers whose supply chains have been disrupted due to the PACT Act.”