Glass House Brands To Acquire Plus Products Via CCAA Process

In what appears to be a day of acquisitions, Glass House Brands (NEO: GLAS.A.U) is the latest firm to announce that it will be acquiring a peer. The firm has entered into a definitive arrangement to acquire Plus Products (CSE: PLUS), as it looks to consolidate assets in the Californian market.

The transaction will see Plus Products acquired for roughly US$25.6 million, in what is effectively the best possible outcome for employees of the company. The firm in mid-September filed for creditor protection as a means of restructuring its business due in part to significant debt related to outstanding convertible debentures.

The company is being acquired by Glass House through what is deemed to be a combination of unsecured convertible debt, equity, and performance based milestones. The purchase is being conducted through the CCAA process that Plus is currently undergoing.

Glass House has indicated it is largely buying the operation due to its “leading edibles brand”, which reportedly ranked number four in edibles brands by sales for the third quarter of 2021. The firm is currently the top ranked brand in the gummy segment according to a Brightfield Consumer Study.

Glass House Brands last traded at US$3.82 on the Neo.

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.

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