Greenlane Holdings Inc. /zigman2/quotes/211319667/composite GNLN +2.98% and KushCo Holdings Inc. /zigman2/quotes/209165034/composite KSHB +0.14% said Wednesday they have agreed to merge in an all-stock deal that will create one of the biggest makers of accessories for the cannabis industry. Under the terms of the deal, KushCo shareholders will receive about 0.2546 shares of Greenlane Class A common stock for each share owned, equal to a 6.3% premium over KushCo's 20-day volume weighted average closing price ending on Tuesday. KushCo shareholders will own about 49.9% of the coming company, with Greenlane owning the remaining 50.1%. The deal also allows Greenlane to continue to pursue other strategic opportunities prior to the the close. The exchange ratio will be amended if it issues additional securities before the close. The deal is expected to generate about $15 million to $20 million annual run-rate cost synergies. The combined company will offer a product line of consumption devices, vaporizers and accessories; supplies and child-resistant packaging; papers and wraps; and complementary solvents and natural products. It will also have proprietary brands including packaging innovator Pollen Gear™, VIBES™ rolling papers, Marley Natural™ Accessories; K.Haring Glass Collection, Aerospaced grinders, Eyce specialty silicone smoking products, and Higher Standards. KushCo co-Founder and CEO Nick Kovacevich will become CEO of the new company, while Greenlane's Bill Mote will be CFO. The deal is expectedto close in the late second quarter or early third quarter. Greenlane shares soared 8% premarket on the news, while KushCo was not yet active.