LONG BEACH, Calif., and TORONTO, Sept. 15, 2021 – PRESS RELEASE – Glass House Brands Inc. ("Glass House" or the "Company"), one of the fastest-growing, vertically integrated cannabis and hemp companies in the U.S., announced that its subsidiary has completed its previously announced acquisition of an approximately 5.5-million-square-foot greenhouse facility in Southern California (the "SoCal Facility") for total consideration of $93 million in cash, reduced from $118 million previously, plus stock considerations payable to the original holder of the option to purchase the SoCal Facility (the "Option Holder").
SoCal Facility Highlights:
"We are thrilled to officially close escrow after significantly reducing the price which will keep an additional $25 million of cash on our balance sheet which is essentially debt-free today," Glass House Chairman and CEO Kyle Kazan said. "We can now commence the first phase of the facility’s conversion and licensing which will dramatically increase our cultivation capacity. This milestone, together with our market-leading brand portfolio, which includes our Glass House Farms flower brand which was recently ranked the No. 1 in flower brand in the state of California in July, an improvement from the No. 2 position that we finished 2020 at (per BDS Analytics), and our extensive planned retail footprint has positioned us to lead the world’s largest cannabis market."
Kazan added, "Our massive Southern California facility has the scale and the tools necessary for us to combine the highest quality with the lowest cost of production along with sustainable, environmentally friendly and responsibly grown craft cannabis. I’m excited to turn over this facility to our Chief Cannabis Officer and President Graham Farrar and his team."
"The Southern California facility is an absolute unicorn and will give us the ability to produce the highest quality cannabis at the lowest possible cost. This should allow us to thrive no matter what the competitive environment looks like," Farrar said. "The market is already responding to Glass House quality, as evidenced by our No. 1 market position. This new greenhouse will allow us to take that to another level and scale. We look forward to leveraging our supply chain and retail to replicate this success across more