Glass House Brands has completed its previously announced acquisition of an approximately 5.5 million square foot greenhouse facility located in Southern California for $93.0 million in cash, reduced from $118 million previously, plus stock considerations payable to the original holder of the option to purchase the SoCal Facility.
"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," said Kyle Kazan, Glass House Chairman and CEO. "We can now commence the first phase of the facility's conversion and licensing which will dramatically increase our cultivation capacity"
Mr. 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" said Graham Farrar, "The market is already responding to Glass House quality, as evidenced by our #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 brands and categories. The entire team has been chomping at the bit to get started. An amazing greenhouse facility, in an ideal climate, with a fantastic team, we couldn't ask for anything more."