Glass House buys edibles brand for $26M
Glass House Brands, a cannabis grower and retailer with its chief operations in Santa Barbara and Ventura counties, is buying one of California’s leading brands of edible cannabis in a deal worth $25.6 million in stock and debt-financed cash.
Plus Products was the No. 4 brand of edibles ranked by sales in the third quarter of 2021, Glass House said in a Dec. 20 news release announcing the deal, while Glass House’s line of cannabis flower was the top selling brand in that category. According to the cannabis research firm BDS Analytics, the deal will make Glass House the only company in the top 5 in California sales in both the flower and edibles categories.
“Our vertically integrated platform will allow us to expand the distribution of Plus to the more than 700 stores in our network, as well as to our own retail stores, as we pursue top sales ranking in both flower and edibles categories in the country’s largest market,” Glass House CEO Kyle Kazan said in the company’s news release.
Glass House has its headquarters in Long Beach but most of its operations in Santa Barbara County, where it grows in Carpinteria-area greenhouses, and Ventura County, where it owns a 160-acre greenhouse property that it is currently retrofitting for cannabis. The company also has a distribution arm and owns three of its own retail dispensaries, including the Farmacy in Santa Barbara. Glass House is publicly traded on a Canadian stock exchange.
Plus is based in San Mateo and its stock trades on an over-the-counter exchange, with a market capitalization on Dec. 20 of around $17 million.
The deal is expected to close in the first quarter of 2022, Glass House said. The companies need the approval on a Canadian court and of Plus’ creditors, because Plus has sought protection under the Companies Creditors Arrangement Act, a Canadian law that provides for a debt restructuring similar to a Chapter 11 bankruptcy in the United States.