Mercer Park Brand Acquisition Corp. acquired California rising star Glass House Group and announced plans to create one of the state’s largest weed management entities with a focus on brand building.
Glass House Group was one of the stars of 2020. Eighths of their namesake farm’s $ 35 MSRP were a smash hit. According to data from BDS Analytics, Glass House Farms had a 4% market share at the end of the year. In the process, the farm dropped from 63rd to second place in the statewide BDS rankings. The deal would see them hit gas even harder in the years to come to surpass that 4% share and prepare for interstate trading opportunities.
Mercer Park Brand Acquisition Corp. [Mercer Park BRND] was formed in 2019 to build brands south of the border. On their website, they call Glass House the cornerstone acquisition of their two years in business. The company bought Glass House for US $ 567 million.
“When we formed Mercer Park BRND, we wanted to create a platform that could launch the first national cannabis brands in the United States,” said BRND President Jonathan Sandelman. “We view the creation of a successful cannabis brand as a combination of four factors: the ability to control quality biomass at scale; produce at the most competitive costs; to offer the highest quality products; and deliver the best value proposition to consumers. It took us to California with its ideal growth climate and community of talented and experienced growers, and ultimately to Glass House Group and this incredible portfolio of assets and talent.
Sandelman believes Glass House has been successful in positioning the company for the future.
“Glass House has a reputation for excellence in all four of these engines and has established a leading flower brand in one of the most competitive cannabis markets in the world,” said Sandelman. “Glass House Group is fast becoming the largest vertically integrated branding platform in California, the world’s largest cannabis market. “
Sandelman is certainly not exaggerating. The Glass House infrastructure put in place to fuel last year’s rise was substantial. Their farms currently have a cultivation footprint of over 500,000 square feet. To help put that space into perspective, a soccer field measures 57,600 square feet. Glass House currently produces 110,000 pounds of dry flower biomass per year. While that’s not all usable weight, hence the biomass nickname, it’s still 55 tons of pot. And as the shelves prove, there was a lot of good jar that came out of the effort.
The new deal will see Glass House increase its production space fivefold by 2023. The expected additional capacity will increase its footprint to around 2.5 million square feet in the first phase. But this is only the beginning.
While it doesn’t make sense to flood the California market with over a million pounds of your own biomass, Glass House has other plans for beyond 2023, and whatever the market beyond. California borders. The final phase of the plans would see Glass House with a total of 6 million square feet of grow space. If yields are increasing similarly to what they are now, you’re talking about over 1.3 million pounds of weed biomass from one entity per year – at this point, grown over 104.1 million pounds. football fields worth garden. The mental visual is quite impressive.
Glass House is expected to open up to 21 stores by next summer and is already on 250 other dispensary shelves in California. It’s a lot of grass. Even if they get into the 700 clinics they are targeting by the end of the year, they still have plenty of time until they have to worry about meeting that final production target.