Glass House buys Plus products for $25 million

Glass House Brands Inc. (OTCQX: GLASF and GHBWF) is buying Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) for approximately $25.6 million in a deal expected to close in the first quarter of 2022. The acquisition will be a combination of unsecured convertible debt and equity, plus additional performance-based consideration. Plus recently found itself in trouble when in September Plus filed for the Canadian version of bankruptcy. According to Plus’s file, he had obtained legal protection from his creditors under the Companies’ Creditors Arrangement Act or “CCAA”, in order to restructure its commercial and financial activities. The acquisition is being made by way of a plan under the CCAA and is subject to the approval of PLUS’s creditors.

“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 chewing gum 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, is the perfect addition to our portfolio.Our vertically integrated platform will allow us to expand distribution of PLUS to over 700 stores in our network, as well as our own retail stores. retail, as we continue to rank top sellers in the flower and edibles categories in the nation’s largest marketplace.”

Jake Heimark, co-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 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.

Plus is a leading edibles brand in California with the #4 ranked edibles brand by sales in Q3 2021. 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. 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. Glass House Farms, was the #1 ranked flower brand by sales in California in Q3 2021.

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.

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