Glass House Brands has entered into a binding Letter of Intent to acquire the remaining equity and property ownership interest in the award-winning The Pottery dispensary. Glass House currently owns 50% of each the equity and property ownership interest in the dispensary, located at 5042-5044, 5048-5052 and 5054-5058 Venice Boulevard, Los Angeles, California.
"Voted one of the top 17 best dispensaries in Los Angeles by Thrillist and L.A. Times, The Pottery is one of the leading cannabis retailers in Southern California," said Kyle Kazan, Glass House Chairman, and CEO. "Designed with a unique urban aesthetic reflective of its convenient centrally located location, The Pottery provides consumers with elevated and interactive retail experiences. It also has a fully functioning indoor cultivation facility. We are thrilled to acquire the remaining ownership stake in this location, our fourth wholly-owned dispensary in the State, and look forward to consolidating its performance in our financial results."
Mr. Kazan added, "Based on its first-quarter run-rate, we currently expect The Pottery to generate 2022 annualized revenue of approximately $3.9 million. Additionally, we see upside in the Los Angeles market when the City implements a strategy to regulate the estimated thousands of unregulated stores."
Under the terms of the Agreement, Glass House will acquire all of the equity interests of N.R.O. Management, LLC, and The Pottery, Inc. for 500,000 equity shares of Glass House set at a fixed price of $6 per share. The shares will have a one-year lock-up period from the closing date. As part of the transaction, Glass House will also acquire The Pottery's three active state cannabis retailer, distributor, and cultivation licenses; as well as six city-level adult-use and medical cannabis retailer, distributor, and cultivation licenses. In addition, Glass House has committed to acquire all of the undivided ownership interests in the Property held by TLMD Holdings, LLC and TLMD Real Estate Holdings, LLC, respectively, for $3,005,000 in cash.
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