– Acquisition makes Glass House the only company to rank in the top 5 in the flower and edible categories in California1 –
LONG BEACH, Calif. and TORONTO, April 29, 2022 /PRNewswire/ — Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.AU and GLAS.WT.U) (OTCQX: GLASF and GHBWF), one of the fastest growing vertically integrated cannabis companies faster in the United States, and Plus Products Inc. (“PLUS”) today announced that Glass House has completed the acquisition of the business of PLUS, a leading cannabis edibles company based at California2. The Company acquired PLUS for approximately $25.6 million3 by a combination of unsecured convertible debt4 and equity, plus an additional performance-based consideration.
“With a mission to create the largest cannabis brand building platform in the CaliforniaWe are delighted to announce the closing of our PLUS acquisition, positioning Glass House as the only company to achieve top 5 rankings in the Flower and Edibles segments of the market. California market,” said Kyle Kazan, Chairman and CEO of Glass House. “Edibles are a key part of our growth strategy as we further expand our product portfolio and build brand awareness. We are extremely excited to begin our work with the PLUS team to expand their product presence. in our own retail stores and across our distribution network.Combining 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 United States. The overlap between active Glass House Brands and PLUS accounts was less than 25% in the first quarter, with Glass House stronger in Southern California and MORE louder in Northern California. Additionally, we are aiming to expand the PLUS brand nationwide, which would increase its MPR by approximately 550% compared to operating in California only5.”
Mr. Kazan added: “The positive side of the current struggle in the California market is that we believe we will find more attractive acquisition targets that are win-win propositions for all parties, including the consumer. We look forward to entering this next stage of growth by delivering on PLUS and Glass House’s shared vision of bringing innovative, high-quality cannabis products to consumers. »
The company’s homegrown cannabis brand, Glass House Farms, was the #1 ranked flower brand in terms of sales in California in Q1 20226. PLUS is a leading edibles brand in California and was the #4 ranked edibles brand in California by sales in Q1 20226. Based on brand awareness, a common CPG metric measuring brand strength, PLUS is the #1 ranked brand in California in the gummy segment, the largest segment in the edible category7.
1. BDS Analysis
2. Specifically, the Company acquired the US business assets of Plus Products Inc. by merging a wholly owned subsidiary with Plus Products Holdings Inc., a wholly owned subsidiary of PLUS.
3. Based on the 10-day volume-weighted average price (“VWAP”) of Glass House shares on NEO prior to the date of execution of the definitive acquisition agreement on December 17, 2021 ($4.08 from 12/16/21 close). Assuming full vesting of the 1,794,791 PSUs to be granted under the transaction, the total purchase price would be approximately $33 million.
4. $20,504,850.96 Principal in Canadian dollars and accrued interest converted to $0.78:USD
5. Based on BDSA 2026e cannabis market size projections for the United States ($46 billion) and for California (US$7.1 billion).
6. BDSA Retail Sales Tracking
7. Brightfield Consumer Study (N=1,535 California edible consumers)
PLUS is a cannabis and hemp food company focused on using nature to balance consumers’ lives. PLUS’ mission is to make cannabis safe and accessible – it starts with high-quality products that deliver consistent consumer experiences. PLUS is headquartered in San Mateo, California.
About Glass House Brands
Glass House Brands is one of the fastest growing vertically integrated cannabis companies in the United States, with a particular focus on the California market and build leading and sustainable brands to serve consumers in all segments. From its greenhouse growing operations to its manufacturing practices, from brand building to retail, the company’s efforts are rooted in respect for people, the environment and the community that co-founds Kyle Kazanchairman and chief executive officer, and Graham Farr, member of the board of directors and president, instilled at the start. Through its brand portfolio, which includes glass trusses, Forbidden Flowers and Mama Sue Wellness, Glass House Brands is committed to achieving its vision of excellence: exceptional cannabis products, produced sustainably, for the benefit of all. For more information and company updates, visit www.glasshousebrands.com and https://ir.glasshousebrands.com/contact/email-alerts/.
This press release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”), including with respect to the Company, on a post-combination basis, being the only company to place in the top 5 in the Flowers and Edibles categories in California; the company’s vertically integrated platform allowing Glass House to expand the presence of its premium products in its own retail stores and distribution network; and for the company to achieve top sales rankings in the flower and edible categories in California. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is planned”, “budget”, “expected”, “estimates”, “continues “, “expects”, “plans”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and expressions or state that certain actions, events or results “may”, “could”, “should”, “should”, “could” or “will” be taken, occur or be achieved. All forward-looking statements, including those herein included, are qualified by this warning.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those indicated in the statements, including the ability to the Company expanding the presence of its premium products in its own retail stores and through its distribution network, and the Company achieving top sales rankings in the flower and edible categories in California, among other factors. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained in this press release speak only as of the date of this press release or as of the date or dates specified in such statements.
For further information on the Company, investors are encouraged to consult the Company’s public filings on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For more information, please contact:
Glass House Brands Inc.
John BrebeckVice President of Investor Relations
Such. : (562) 264 5078
jamin horngeneral counsel and corporate secretary
Such. : (562) 264 5078
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