Glass House Brands to Acquire PLUS, a Leading California Edibles Brand


Glass House is working to create the largest cannabis branding platform in the world. California. The company’s homegrown cannabis brand, Glass House Farms, was the #1 ranked flower brand in terms of sales in California in the third quarter of 20213. PLUS is a leading edibles brand in California with edibles brand ranked #4 by sales in Q3 20213. 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 category4. According to BDS Analytics (“BDSA”), the combined company would be the only company to rank in the top 5 in the categories of flowers and edibles in California.

“As one of the fastest growing cannabis categories, edibles are a key part of Glass House‘s growth strategy,” said Kyle Kazan, CEO of Glass House. “PLUS has built a very strong brand in the gummy segment, and in the very competitive California and Nevada markets, no less. PLUS’s diverse and well-known line of edibles, including dual-action sleep and strain-specific products, are the perfect addition to our portfolio. Our vertically integrated platform will allow us to expand the distribution of PLUS to more than 700 stores in our network, as well as our own retail stores, as we pursue top seller rankings in the flower and flower categories. edible products in the largest market in the country. “

Kyle Kazan further stated, “We believe there is a long haul for PLUS on the Glass House platform. Based on Headsets November data, PLUS overtakes Wana in California, the country’s largest cannabis market, by a multiple of almost 10 times. With his California presence and operations in other states, we believe PLUS has a wide path to play at a domestic level at least equal to Wana, which was acquired by Canopy Growth in October at a valuation above $297.5 million.”

Jake Heimarkco-founder and CEO of PLUS, added, “We developed PLUS with a vision to be part of the strongest brand platform in cannabis, and we are delivering on that vision by joining Glass House. Our mission to making cannabis safe and accessible, with high-quality products that deliver consistent consumer experiences, is perfectly aligned with Glass House’s reputation for providing exceptional cannabis products, produced sustainably, for the benefit of all We look forward to working with Glass House to continue to pursue this common goal.

The acquisition, which is expected to close in the first quarter of 2022, is being made by way of a plan under the Companies’ Creditors Arrangement Act, RSC 1985, c. C-36 (the “CCAA”) and is subject to certain closing conditions customary for transactions of this nature, including, but not limited to, the approval of PLUS’s creditors, the approval of the Supreme Court of British Columbia under the CCAA proceedings and the approval of the Neo Exchange.

Sources:


1.

Based on the 10-day volume-weighted average (“VWAP”) price of Glass House shares on NEO prior to the date of this press release ($4.08 as of the close of 12/16/21)

2.

Principal of CA$20,504,850.96 and accrued interest converted at 0.78 CAD:USD

3.

BDSA Retail Sales Tracking

4.

Brightfield Consumer Study (N=1,535 California edible consumers)

About MORE

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/.

Forward-looking statements

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 timely closing of the Acquisition, or at all; the combined company becoming the only company to place in the top 5 in the Flowers and Edibles categories; the vertically integrated platform allowing Glass House to expand the distribution of PLUS to the more than 700 stores in its network, as well as its own retail stores; and the combined company with the highest sales ranking in the flower and edible categories in California; PLUS have a wide path to play at a national level at least equal to Wana. 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 to complete the Acquisition on schedule, or not at all, distribute the PLUS brand in its more than 700 network stores, and achieve 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 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.

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]; Investor Relations Contact: MATTIO Communications, Tel. : (416) 992-4539, [email protected]; Press relations contact: MATTIO Communications, Public Relations, [email protected]; For more information about PLUS, please contact: Jake Heimark, CEO and Co-Founder, [email protected]; Investors: Cole Stewart, Investor Relations, [email protected]Tel: (213) 282-6987

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