Glass House Brands has completed its acquisition of a 5.5-million-square-foot greenhouse facility in Southern California. The deal was finalized for $93 million in cash, reduced from $118 million previously, plus stock considerations payable to the original holder of the option to purchase the SoCal Facility.
The facility sits on approximately 160 acres of agricultural property in Ventura County, CA. It features six greenhouses totaling approximately 5.5 million square feet, water treatment facilities, an on-site well, automated roof washing system, 125 acres of ultra-high-tech and efficient KUBO Ultra-Clima greenhouses, and supplemental lights and natural gas cogeneration facilities producing power, heat, and CO2.
“We are thrilled to officially close escrow after significantly reducing the price which will keep an additional $25 million of cash on our balance sheet which is essentially debt-free today,” Glass House Chairman and CEO Kyle Kazan said. “We can now commence the first phase of the facility’s conversion and licensing which will dramatically increase our cultivation capacity. This milestone, together with our market-leading brand portfolio… and our extensive planned retail footprint has positioned us to lead the world’s largest cannabis market. Our massive Southern California facility has the scale and the tools necessary for us to combine the highest quality with the lowest cost of production along with sustainable, environmentally friendly and responsibly grown craft cannabis.”
Glass House Brands Inc. one of the fastest-growing, vertically integrated cannabis and hemp companies in the U.S.
Graham Farrar, Chief Cannabis Officer and President said,” The Southern California facility is an absolute unicorn and will give us the ability to produce the highest quality cannabis at the lowest possible cost. This should allow us to thrive no matter what the competitive environment looks like. This new greenhouse will allow us to take that to another level and scale. We look forward to leveraging our supply chain and retail to replicate this success across more brands and categories… An amazing greenhouse facility, in an ideal climate, with a fantastic team, we couldn’t ask for anything more.”
The revised terms of the Purchase Agreements allowed Glass House to reduce its upfront closing costs and to devote more resources to converting the SoCal Facility for commercial cannabis use.