Glass House Brands to Acquire PLUS, a Leading California Edibles Brand
Strengthens its consumer brand portfolio with one of California’s leading manufacturers of cannabis edibles
LONG BEACH, Calif. and TORONTO, Dec. 18, 2021 /CNW/ — Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.AU) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), the one of the fastest growing and vertically integrated cannabis companies in the United States, today announced that it has signed a definitive agreement to acquire the business of Plus Products Inc. (“PLUS”), a leader in cannabis edibles in California. Glass House acquires PLUS for approximately US$25.6 million1 by a combination of unsecured convertible debt2 and equity plus additional performance-based consideration (the “Vesting”).
Glass House is working to create the largest cannabis brand building platform in California. The company’s homegrown cannabis brand, Glass House Farms, was the #1 ranked flower brand by sales in California in Q3 20213. PLUS is a leading edibles brand in California with the #4 ranked edibles brand 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 edibles category.4. According to BDS Analytics (“BDSA”), the combined company would be the only company to place in the top 5 in the Flowers and Edibles categories in California.
As one of the fastest growing cannabis categories, edibles are a key part of Glass House’s growth strategy. PLUS has built a very strong brand in the gummy segment, and in the very competitive markets of California and Nevada, 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.
Kyle Kazan, CEO of Glass House
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 MORE on the Glass House platform. Based on November data from Headsets, PLUS outsells Wana in California, the nation’s largest cannabis market, by a multiple of nearly 10 times. With its presence in California and operations in other states, we believe PLUS has a wide path to play at a national level at least equal to Wana, which was acquired by Canopy Growth in October for a valuation of more than 297, $5 million.
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.
Jake Heimark, co-founder and CEO of PLUS
Our mission to make 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. 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, among other things, the approval of the creditors of PLUS, the approval of the Supreme Court of British under the CCAA proceedings, and the approval of the Neo Exchange.
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 CAD $20,504,850.96 and accrued interest converted at CAD 0.78: USD
3. BDSA Retail Sales Tracking
4. 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 building leading, enduring brands to serve consumers across all segments. From its greenhouse 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-founders Kyle Kazan, President and CEO, and Graham Farrar, Board Member 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 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/.
original press release
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