$100 Million Loan to Glass House Brands Gets Approved
Since the inception of Glass House Brands, their vision has been to become the biggest marijuana brand-building platform in the state of California, according to Kyle Kazan, Chairman and Chief Executive Officer of Glass House. 
Finance

Cannabis Business Secures $100 Million Loan

Since the inception of Glass House Brands, their vision has been to become the biggest marijuana brand-building platform in the state of California, according to Kyle Kazan, Chairman and Chief Executive Officer of Glass House. 
Finance

Cannabis Business Secures $100 Million Loan

PUBLISHED
Jan 12, 2022
read time 3 MIN
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Glass House Brands Inc. (OTCQX: GLASF) (OTCQX: GHBWF) has entered a highly secured term loan deal with an American-based credit investment fund. The agreement is for up to $100 million along with an initial draw of $50 million.

Glass House states that the initial term loan came with an interest rate set at ten percent per annum and under no circumstance is ever allowed to go over 12% per annum, as reported in the Green Market Report.

Glass House Brands has some big plans for how they plan on using the capital. They plan to use the money for general corporate purposes and fund the phased retrofit of their approximate 5.5 million square feet cultivation facility, which is currently under renovation in Camarillo, California.

Since the inception of Glass House Brands, their vision has been to become the biggest marijuana brand-building platform in the state of California, according to Kyle Kazan, Chairman and Chief Executive Officer of Glass House. 

Kyle says that this loan agreement will help Glass House Brands achieve this goal because it provides them with a non-diluted infusion of capital to fund the whole retrofit of their SoCal facility.

Because of the rising support around the country for marijuana regulation reformation, Glass House believes right now is the perfect time to improve the availability of their high-quality and sustainably grown marijuana. They will simultaneously be lowering their COGS (costs of goods sales) through scaling and automation.

Glass House Brands has a planned six million square feet footprint with a projected total biomass production of around 1.7 million pounds. The expansion should allow Glass House Brands to become the most efficient and largest marijuana supplier in America by a considerable margin. 

Due to this significant capacity, Glass House Brands will be much better equipped and positioned to supply marijuana users across America as soon as that opportunity appears, says Kazan. 

The company recently acquired a 160-acre SoCal Facility with six onsite greenhouse facilities in September 2021. Glass House also has retail cannabis dispensaries offering all kinds of cannabis supplies.

The SoCal Facility contains about 125 acres of super high-tech and efficient KUBO Ultra-Clima greenhouses. 

It also includes an onsite well, water treatment facilities, an automated roof washing system, and auxiliary lights. That is not all; natural gas cogeneration facilities produce heat, power, and CO2 (carbon dioxide). 

The business says that initially, it planned phase 1 of the SoCal Facility retrofit to include converting two greenhouses. 

One greenhouse would propagate nursery cuttings or clones to support the whole facility. At the same time, the other greenhouse will have a capacity of 180,000 pounds of biomass each year. 

The Phase 1 expansion also includes a packhouse and a distribution center that supports the growth of Green House Brand’s wholesale biomass business. 

Another cannabis business, Ascend Wellness Holdings secured a loan worth at least $210 million to repay the company’s outstanding debt.

Last August, Glass House Brands reported cash and cash equivalents of $134 million as of June 2021 versus a mere 4.5 million in June 2020 just last year. 

It appears that during the quarter, Glass House Brands says they eliminated $38 million of debt after completing a Preferred Stock offering and exchanging of both principal and interest accrued to all participating investors. 

The exchange also issued Preferred Stock and warrants to both companies, which triggered the equity conversion of all of their business’ outstanding Convertible Promissory Notes.

To see the facility’s video, which the company posted, click here.

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