Glass House has completed the acquisition of the business of PLUS, a cannabis edibles company based in California. The company acquired PLUS for approximately 25.6 million USD through a combination of unsecured convertible debt and equity, plus additional performance-based consideration.
"With a mission to create the largest cannabis brand-building platform in California, we are thrilled to announce the closing of our PLUS acquisition, positioning Glass House as the only company with a top 5 position in both the Flower and Edibles segments in the California market," said Kyle Kazan, Glass House's Chairman, and Chief Executive Officer. "Edibles are a key component of our growth strategy as we further expand our product portfolio and build stronger brand awareness. We are incredibly excited to begin our work with the PLUS team to expand the presence of their premium products in our retail stores and across our distribution network. The combination of our existing brand platform with PLUS will result in a substantial increase in our Total Addressable Market ("TAM") opportunity in California and, eventually, across the US. The overlap between Glass House Brands' active accounts and PLUS's was less than 25% in the first quarter, with Glass House being stronger in Southern California and PLUS stronger in Northern California. Additionally, we aim to grow the PLUS brand nationally, which would expand its TAM by roughly 550% versus operating in California alone."
Mr. Kazan added, "The upside of the current struggle in the California market is that we believe we will find more attractively valued acquisition targets that are win-win propositions for all parties, including the consumer. We look forward to entering this new stage of growth by executing on PLUS' and Glass House's shared vision of bringing innovative, high-quality cannabis products to consumers."
The company's house cannabis brand, Glass House Farms, was the No. 1 ranked flower brand by sales in California in Q1 20226. PLUS is an edibles brand in California and was the No. 4 ranked edibles brand in California by sales in Q1 20226. Based on top-of-mind brand awareness, a common CPG metric measuring brand strength, PLUS is the No. 1 ranked brand in California in the gummy segment, the largest segment of the edibles category.
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Glass House Farms