Glass House Brands (NEO: GLAS.A.u) has officially completed its go-public transaction with that of Mercer Park Brand Acquisition Corp. With the closing of the SPAC transaction, the company is set to begin trading today on the Neo Exchange.
Glass House is the latest firm to go public via a special purpose acquisition vehicle within the cannabis space, following TPCO Holdings (NEO: GRAM), and others that took similar go-public paths earlier this year. The company is currently focused solely on the California market, where it has placed its efforts on becoming one of the largest cannabis greenhouse operators in the state as well as all of the US.
With the closing of the arrangement, the company is expected to now work towards developing its 5.5 million square foot greenhouse in the state, as well as focus on its retail roll-out. The firm currently expects to reach a total of 23 operational dispensaries by the first half of 2022, while also looking to build its wholesale network to a targeted 700 dispensaries across the state.
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However, despite just going public, the company has not been without its struggles already. The company saw significant redemptions during its qualifying transaction, with the firms expected US$355 million in cash post-transaction whittling down to a figure so low that the company hasn’t even provided a recent update, going against SPAC closing traditions. An attempt to bolster that cash position by a further $50 million via an investment from TPCO also fell through, resulting in the latest tally for the firm being a figure in the sub $85 million range.
Glass House Brands is currently expected to commence trading at a price near to $10.50 per subordinate voting share.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
