Glass House Brands Completes 5.5-Million-Square-Foot Southern California Greenhouse Facility Acquisition


<![CDATA[LONG BEACH, Calif., and TORONTO, Sept. 15, 2021 – PRESS RELEASE – Glass House Brands Inc. ("Glass House" or the "Company"), one of the fastest-growing, vertically integrated cannabis and hemp companies in the U.S., announced that its subsidiary has completed its previously announced acquisition of an approximately 5.5-million-square-foot greenhouse facility in Southern California (the "SoCal Facility") for total consideration of $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 "Option Holder").SoCal Facility Highlights:Approximately 160 acres of agricultural property located in Ventura County, California.Approximately 125 acres of ultra-high-tech and efficient KUBO Ultra-Clima greenhouses, on-site well, water treatment facilities, automated roof washing system, supplemental lights and natural gas cogeneration facilities producing power, heat and CO2.Includes six greenhouses totaling approximately 5.5 million square feet:Phase 1 of the SoCal Facility retrofit will include the conversion of two greenhouses and two packhouses totaling approximately 1.7 million square feet and is expected to be completed in Q1 2022, with initial planting expected to follow shortly thereafter, contingent on regulatory approval.Planned upgrades include:Installation of black-out curtains, ebb and flood floors, high-density gutter system, dry rooms and processing facilities.Upgraded HVAC system to further optimize climate conditions.Automated nutrient delivery and irrigation systems.The initial Phase 1 capacity is expected to conservatively produce over 180,000 dry pounds of sellable cannabis (flower, smalls and trim), representing a more than 300% increase from our current capacity."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, which includes our Glass House Farms flower brand…

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Source : Glass House Brands Completes 5.5-Million-Square-Foot Southern California Greenhouse Facility Acquisition

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