Glass House Brands to Buy Plus Products for $25.6 Million
Strengthens Consumer Brand Portfolio with Leading California Cannabis Edibles Manufacturer
LONG BEACH, Calif. and TORONTO, Dec. 20, 2021 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.A.U) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest- growing, vertically-integrated cannabis companies in the U.S., today announced that it has executed a definitive agreement to acquire the business of Plus Products Inc. (“PLUS”), a leading cannabis edibles company in California. Glass House is acquiring PLUS for approximately US$25.6 million1 through a combination of unsecured convertible debt2 and equity, plus additional performance-based consideration (the “Acquisition”).
Glass House is working to create the largest cannabis brand-building platform in California. The Company’s house cannabis brand, Glass House Farms, was the No. 1 ranked flower brand by sales in California in Q3 20213. PLUS is a leading edibles brand in California with the No. 4 ranked edibles brand by sales in Q3 20213. Based on top-of-mind brand awareness, a common CPG metric measuring brand strength, PLUS is the No. 1 ranked brand in California in the gummy segment, the largest segment of the edibles category4. According to BDS Analytics (“BDSA”), the combined company would be the only company with a top 5 position in both the Flower and Edibles categories in California.