California-based cannabis firm Glass House Group is set to be bought by a special acquisition company (SPAC) in a $567 million deal.
The deal would help to create California’s largest vertically integrated marijuana business.
As per the press release, Glass House Group will be listed on the Canadian NEO Exchange under the ticker symbol GLAS.U after the deal closes. The deal is expected to be in the first half of this year and the transaction has a $1 billion equity valuation.
The deal also includes financing for the acquisition of two Glass House competitors, Retailer Element 7 and cultivator Southern California Greenhouse.
Toronto-based Mercer Park Brand Acquisition Corp., a SPAC founded in 2019, will become the new owner of Glass House Group.
Glass House is poised to gain another 17 retail locations by merging with Element 7 and will add to its cultivation footprint by another 5.5 million square feet by acquiring Southern California Greenhouse by the first quarter of 2022 says the release.
Mercer Park Chair Jonathan Sandelman, who is also the CEO of Ayr Wellness, stated, “Glass House Group is poised to become the largest, vertically integrated brand-building platform in California.”
Glass House already runs more than 500,000 square feet of cultivation canopy and controls four retail shops.
The $567 million deal will include $325 million for the acquisition of Glass House Group, $219 million for Southern California Greenhouse, and $24 million for the 17 store licenses from Element 7.
