Mercer Park Brand SPAC to Buy California Cannabis Operator Glass House Group for $567 Million
Mercer Park Brand Acquisition Corp. and Glass House Group Announce Business Combination to Create the Largest Cannabis Brand-Building Platform in California
- Combination Creates the Most Expansive, Fully Integrated Cannabis Business in the World’s Largest Cannabis Market
- Long-term Cultivation Expansion to 6 Million ft2 of State-of-the-Art Greenhouse Represents by Far the Largest Capacity of Any Cannabis Operator in California
Retail Footprint Expected to Reach 21 Operational Dispensaries by Q1 2022, More Than Double the Next Largest Retail Operator
- Current Brand Portfolio Includes Glass House Farms – the #2 Ranked Flower Brand in California (YE2020 per BDS Analytics), as well as Forbidden Flowers and Mama Sue
- Total Purchase Price Consideration of US$567 Million Represents a 2022E Revenue and Adjusted EBITDA Multiple of 1.7x and 5.5x, Respectively
- Investors Commit to US$85 Million Private Placement; Combined Public Company Expected to Have up to $US355 Cash Balance at Closing
- Joint Conference Call to Discuss the Proposed Transaction Tomorrow at 8:30 a.m. Eastern Time
TORONTO, April 08, 2021 (GLOBE NEWSWIRE) — Mercer Park Brand Acquisition Corp. (NEO: BRND.A.U; OTCQX: MRCQF) (“BRND”), a Special Purpose Acquisition Company (SPAC) with the intent to focus on branded product businesses in cannabis and/or cannabis-adjacent industries, has entered into a definitive agreement to acquire Glass House Group (“Glass House” or “GH Group” or the “Company”), a vertically integrated, California-based cannabis company, and all related assets for total consideration of approximately US$567 million.
It is a condition of closing the business combination that the resulting company’s shares will be listed on the NEO Exchange (under the ticker symbol GLAS.U). Subject to the satisfaction of all required conditions, the transaction is expected to close in the first half of 2021.