– Expands Glass House’s wholly-owned dispensary footprint to four.
– Including the acquisitions of The Pottery and NHC, Glass House aims to add 7 new dispensaries in the second half of 2022, bringing its total retail footprint to 10 stores.
LONG BEACH, Calif. and TORONTO, July 28, 2022 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.AU) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest growing, vertically integrated cannabis companies in the United States, today announced that it has acquired the remaining stake in The Pottery Inc., the operating entity of award-winning dispensary The Pottery. Glass House previously owned 50% of the dispensary business, located at 5042-5044, 5048-5052 and 5054-5058 Venice Boulevard, Los Angeles, California (the property”).
“Over the past year, The Pottery has been cited by several publications, such as LA Weekly, Thrillist, the LA Times and Angeleno as one of the top upscale dispensaries in Southern California. We are delighted to have acquired the remaining stake,” said Kyle Kazan, CEO of Glass House. “Designed with a unique urban aesthetic reflecting its central location, The Pottery offers consumers elevated and interactive retail experiences. It also features a fully functional indoor grow facility. We are excited to acquire the remaining stake in this location, our fourth wholly-owned dispensary in the state, and we look forward to solidifying its performance in our financial results.”
Mr. Kazan added: “We currently expect The Pottery to generate annualized revenues of approximately $3.8 million in the second half of this year. Additionally, we see benefits in the Los Angeles market as the City implements a strategy to regulate the estimated thousands of unregulated stores. We are on track to execute a dramatic transformation in the size of our retail dispensary business this year. Along with the continued ramp-up of Phase I production at our SoCal plant and the addition of PLUS, this further solidifies our trajectory to become cash flow positive by early 2023.1. Glass House had $21.7 million retail revenue from its three wholly-owned dispensaries in 2021. With the addition of The Pottery, plus the three NHC dispensaries to our portfolio, and our new Farmacy dispensaries in Vista Island, Santa Ynez and Eureka all of which are slated to open this year, we will have the potential to nearly triple our annual retail dispensary revenues to over $60 million.2 The increased retail footprint should provide a significant revenue opportunity for our CPG business, including PLUS. »
Pursuant to the purchase agreement, Glass House acquired 100% of the interests of NRO Management, LLC (the management company of The Pottery) and The Pottery, Inc. for 500,000 shares of Glass House at a price fixed from $6 per share. The shares are unavailable for one year from the closing date. As part of the transaction, Glass House also acquired The Pottery’s three active cannabis retailer, distributor and cultivation licenses; as well as six city-level medical and adult cannabis retail, distribution, and cultivation licenses.
Footnotes and sources:
- This excludes potential capex investments in the retrofit of the Phase II SoCal facility.
- This statement means that at some point in the next twelve months, the Company has the potential to achieve monthly income that annualizes to $200 million. The statement assumes the following in potential incremental revenue from each source: 1) Camarillo annualized wholesale biomass sales (SoCal facility) $50-75 million; 2) The acquisitions of the three NHC dispensaries are finalized and generate annualized revenues of $25 million; 3) Pottery generates annualized revenue of $3.9 million; 4) PLUS maintains its pre-acquisition annualized revenue of $14 million per year; 5) The Vista Island, Santa Ynezand Eureka dispensaries are open as planned in Q3 2022 and are producing on average $5 million in annual income each; 5) That the main activity of the Company which existed before the addition of these new sources of income is able to provide $69 million In income.
About Glass House Brands
Glass House Brands Inc. 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 Farra, member of the board of directors and president, instilled at the start. Through its portfolio of brands, which includes Glass House Farms, Forbidden Flowers and Mama Sue Wellness, Glass House Brands Inc. 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/.
Certain information contained in this press release contains “forward-looking information” within the meaning of applicable securities laws. Such forward-looking information includes, but is not limited to, information regarding Glass House’s objectives and strategies to achieve those objectives, as well as information regarding its beliefs, plans, expectations, anticipations, forecasts, estimates and intentions. Such forward-looking information is identified by the use of words and phrases such as “will”, “may”, “would”, “should”, “could”, “expect”, “intend to “, “estimates”, “anticipates”, “plans”, “forecasts”, “believes” or “continues”, the negative of these terms and similar terminology, including references to assumptions, although all forward-looking information do not contain such terms and expressions. In particular, and without limiting the generality of the foregoing, the forward-looking information contained in this press release includes statements relating to: the expectation that The Pottery will generate annualized revenues of approximately $3.8 million in the second half of this year; our trajectory to become cash flow positive by early 20231; the completion of the proposed acquisitions of the NHC dispensary which are subject to the satisfaction of certain closing conditions; the potential to nearly triple our annual retail dispensary revenues to over $60 million2 ; Glass House’s increased business footprint, which provides a significant revenue opportunity for its CPG business, including PLUS;
Glass House hits $200 million+ revenue rate in next 12 months; acquisitions resulting in increased retail revenue; financial and operating projections disclosed in connection with acquisitions; Glass House nearly tripled its annual retail dispensary revenue to more than $60 million; SoCal Facility Phase I Biomass Wholesale Revenue Reaching Annualized $50-75 million by the beginning of 2023. Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond the control of the Company, which could cause actual results to differ materially from those disclosed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, The Pottery not generating the revenues currently expected; the Company not becoming cash flow positive within the expected timeframe, or at all; the closing conditions of the proposed acquisitions of the NHC dispensary are not met on time or at all; Glass House not being able to achieve $200 million+ in revenue over the next 12 months or at all; financial and operating projections disclosed in connection with uncompleted acquisitions; Glass House not being able to nearly triple its annual retail dispensary revenue to more than $60 million; the increased retail footprint not providing meaningful revenue for Glass House’s CPG business as expected; SoCal Facility Phase I Biomass Wholesale Revenues Not Reaching Annualized Rate $50-75 million by early 2023, as well as risk factors included in the company’s annual information form and other public disclosure documents available at www.sedar.com. Although the Company has attempted to identify the primary risk factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other risk factors that are not currently known to the Company or that it currently believes to be immaterial and which could also cause actual results or future events to differ materially from those expressed in such forward-looking information. Accordingly, all forward-looking information contained in this press release is qualified by the foregoing cautionary statements, and there can be no assurance that the results or developments the Company anticipates will occur or, even if largely realize, that they will come true. have the expected consequences or effects on the Company’s business, financial condition or results of operations.
SOURCEGH Group, Inc.
For further information: Glass House Brands Inc., John Brebeck, Vice President of Investor Relations, T: (562) 264 5078, [email protected]; Mark Vendetti, Chief Financial Officer, T: (562) 264 5078, [email protected]