Glass House Brands is planning to retrofit an additional greenhouse to expand production at its SoCal Farm, targeting an incremental one million square feet capable of producing 250,000 pounds of high-quality sun-grown cannabis annually, with commercial cultivation to begin by the end of 2023. This expansion plan follows the successful completion of the company's Phase I SoCal Farm expansion in 2022.
"This new greenhouse capacity will more than double the current production footprint of our SoCal Farm and build on the incredible momentum we've generated over the initial two quarters of operating this amazing greenhouse farm. The last two years have been challenging for the industry, and since the beginning of July 2022 alone, the number of cultivation licenses in the state of California dropped by over 1,200, which we estimate is an 11.7 million square foot (or 13%) decrease in acreage under cultivation. We believe this is a good time to bring on additional capacity," said Co-Founder, Chairman, and CEO of Glass House Brands, Kyle Kazan. "In February alone, 265 cultivation licenses were not renewed out of 519 that were up for renewal. This is a non-renewal rate of 51%."
"With an unmatched combination of quality, scale, and low cost, we're well positioned to leverage our durable competitive advantage in the California market and rapidly capitalize on broader expansion opportunities as the U.S. market continues to evolve."
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