– First revenues projected by the end of the second quarter of 2022
– In 10 weeks, SoCal facility blooms Canopy equivalent to Padaro facility after 10 months
– We encourage all shareholders to sign up for Glass House Investor Sesh at the SoCal facility on June 24ewhich will be held at the same time as our general meeting
– The latest investor presentation, updated to Q1 22, is available here
LONG BEACH, Calif. and TORONTO, June 3, 2022 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.AU) and (NEO: GLAS.WT.U) (OTCQX: GLASF) and (OTCQX: GHBWF), a one of the fastest growing and vertically integrated cannabis companies in the United States, today announced that it has successfully completed its first harvest at the SoCal facility. Upon receipt of all necessary licenses to commence cultivation activity on March 11eGlass House immediately transferred approximately 30,000 clones from the company’s neighboring cultivation facility to Santa Barbara, California at the SoCal facility’s nursery and continued to expand the scale of cultivation over the following weeks. Management had originally forecast that the first harvest could take place in the third quarter of 2022.
“I would like to commend the team at Glass House Farms for once again exceeding expectations when starting up our SoCal facility. We now expect to achieve revenue from our first harvest at the SoCal facility before the end of the second quarter. 2022, more than four weeks ahead of schedule.” said Kyle Kazan, CEO of Glass House. “We remain on track to become the leader in sun-grown cannabis cultivation capability. We believe our high-quality, low-cost production capabilities will provide us with a competitive advantage in California, the largest cannabis market in the world. In addition, the recent closing of the acquisition of PLUS Products, the signing of definitive documents for the acquisition of three natural healing center dispensaries, the signing of a binding letter of intent to purchase the remaining capital and of land interest in The Pottery, along with the planned opening of three new Farmacy Center locations by the end of Q3 2022 sets the stage for Glass House to exceed a $200 million income execution rate in 2023.1 In this time of industry consolidation, we believe that executing our vertical integration strategy will establish Glass House as the dominant player in the California market, and as Calfornia’s most attractive partner for brands, MSOs and retail operators. They say seeing is believing, and we warmly invite all investors to join us at our SoCal facility for our 1st Glass House Annual Investor Session on June 24e. We will be hosting guided tours of the greenhouses and Q&As with the management team.” (For more information and to register, click here)
“The grow team has pushed the boundaries of what is possible in cannabis cultivation.” said Graham FarrPresident and CEO of Cannabis, “At our farm in Padaro, the time from property acquisition to harvest was nearly 34 months; in SoCal, it took 9 months. Our facility canopy SoCal achieved in 10 weeks what it took us 10 months to achieve in Padaro. Although we are still optimizing the cultivation process here, there is every indication that we will be able to meet our quality goals. We are thrilled to have completed our first harvest and look forward to completing our first sale of cannabis grown in the SoCal facility before the end of the second quarter of 2022.”
Graham continued, “This is a true Unicorn facility that will allow us to produce high-quality sun-grown cannabis at near-outdoor cost, providing a sustainable competitive advantage that allows us to succeed in all market conditions. In addition, the location of the installation in an ideal climate; as well as its solar and cogeneration capabilities make it significantly more energy efficient, with remarkably lower carbon emissions than other greenhouse operations. »
The SoCal facility consists of six environmentally controlled, high-tech agricultural greenhouses totaling approximately 5.5 million square feet, located on a 165-acre property in Ventura County, California. The Phase I renovation involves optimizing approximately 1.7 million square feet of the SoCal facility for growing cannabis. The conversion of two greenhouses is included in the first phase of renovation. One will consist of a nursery, growing clones to support the whole setup; and the other will be used for flowering and will have a capacity of approximately 180,000 dry pounds of cannabis per year. Also included, and under construction, is a packing station for processing and a separate distribution center that will support cultivation operations.
Glass House Brands updates its presentation to investors quarterly shortly after the filing of its financial statements and MD&A. The first quarter 2022 investor presentation is available at: https://ir.glasshousebrands.com/news-events/investor-presentation/
Footnotes and sources:
This statement means that at some point in the next twelve months, the company has the potential to achieve monthly revenue that annualizes to $200 million. The statement assumes the following in potential incremental revenue from each source: 1) Camarillo (SoCal facility) annualized wholesale biomass sales of $50-75 million; 2) The three NHC dispensaries generate annualized revenues of $25 million; 3) The Pottery generates annualized revenues of $3.9 million; 4) PLUS maintains pre-acquisition annualized revenue of $14 million per year; 5) Isla Vista, Santa Ynez, and Eureka dispensaries are open as planned in Q3 2022 and are producing an average of $5 million in annual revenue each; 5) That the Company’s core business that existed prior to the addition of these new sources of revenue is capable of generating $69 million in revenue.
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/.
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 first phase of the SoCal facility conversion and the timing of its completion; the Company’s first sale of cannabis grown in the SoCal facility and the timing of its completion; the expectation that the Company will be well positioned to lead the world’s largest cannabis market, that the Company will become a leader in re of cannabis cultivation capacity; and that the SoCal facility will give the company the ability to produce high-quality cannabis at the lowest possible cost; that the execution of our vertical integration strategy will establish Glass House as the dominant player in the California market, and as Calfornia’s most attractive partner for brands, MSOs and retail operators; the completion of our first sale of cannabis grown in SoCal before the end of the second quarter of 2022; and that Glass House should exceed a $200 million revenue execution rate in 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 underestimated. understood by this forward-looking information. These risks and uncertainties include, but are not limited to, the conversion of the SoCal facility not occurring as expected; the company’s first cannabis sale from the SoCal facility does not go as planned; that the Company does not become a leader in cannabis cultivation capability, dominate the largest cannabis market in the world and ultimately produce high quality cannabis at the lowest possible cost; the deadlines indicated in this press release are not respected; as well as the other risk factors described in the Company’s annual information form available at www.sedar.com and its Form 40-F available at www.sec.gov. Although the Company has attempted to identify key 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 substantially realize that they will have the expected consequences or effects on the Company’s business, financial condition or results of operations.
SOURCE Glass House Brands Inc.
For further information: Glass House Brands Inc., John Brebeck, Vice President of Investor Relations, T: (562) 264 5078, [email protected]; Jamin Horn, General Counsel and Corporate Secretary, T: (562) 264 5078, [email protected]