Vireo Growth and Glass House Brands have announced a joint venture to build one of California's largest and most strategically positioned cannabis retail platforms. Following regulatory and certain closing conditions, each company will contribute its California dispensary operations to the joint entity in exchange for a 50% ownership interest.
Vireo operates twelve dispensaries and home delivery operations recently acquired from Eaze, Inc. ("Eaze"). Glass House currently operates eleven California retail locations. Together, the combined network will be supported by a preferential supply agreement with Glass House, California's most efficient large-scale cannabis producer. After five years, Vireo will have the option to acquire Glass House's equity interest in the joint venture, and Glass House will have a reciprocal put right.
Cory Azzalino, Vireo's President of California, has been appointed CEO of the joint venture, where he will oversee operations and lead the platform's retail acquisition and expansion strategy.
"California remains the world's largest legal cannabis market, and this joint venture allows us to unlock its potential in a way neither company could achieve alone," said Kyle Kazan, Co-Founder, Chairman, and CEO of Glass House. "Vireo brings exceptional retail reach and delivery infrastructure through the Eaze platform, while Glass House contributes proven retail execution, low-cost, large-scale production and deep brand equity. Together with Vireo, we have found a way to mitigate difficult California pricing dynamics and enhance the value of our retail operations without broadening the focus from Glass House's primary goal of seeking out and selling our biomass into new legal markets outside the state."
"Glass House is the ideal partner to collaborate with to build the future of California cannabis retail," said John Mazarakis, CEO of Vireo. "Their production scale and brand strength, combined with Vireo's retail depth and access to one of the industry's leading technology-based delivery platforms, creates a joint venture greater than the sum of its parts — one built to serve more consumers, support independent brands, and offer a compelling home for operators looking for a strong, well-capitalized partner."
The joint venture's integrated delivery capabilities through the Eaze platform will extend distribution into areas with limited retail access, providing competitive pricing that supports the legal market.
"I'm proud to lead this platform and the opportunity it represents," said Cory Azzalino. "Our combined retail and delivery network gives us the reach and resources to bring high-quality, affordable cannabis to consumers across California — including underserved communities — while pursuing disciplined growth that strengthens the legal market for the long term."
For more information:
Vireo
vireohealth.com
Glass House Brands
[email protected]
glasshousebrands.com/
