Glass House Enters Legal Battle To Take Control Of Retail Assets
All is not well in the cannabis SPAC world. After de-spacing earlier this year amid possibly the worst environment to go public as a cannabis firm, Glass House Brands (NEO: GLAS.A.U) has found itself amid further struggles. The firm last night announced that it has filed a lawsuit as it struggles to grab control of its previously announced asset purchases.
As part of its go-public transaction, Glass House was to acquire a total of seventeen retail licenses in the state of California. The intent was for the licenses to be used for the firm to push its product cultivated at its soon-to-be-massive cultivation facility within the state.
However, things don’t appear to be going as planned. Element 7, the firm that was to be merged into the company upon closing of the go-public, appears to now be unwilling to go through with the plan. A total of three retail licenses have been fully transferred to Glass House, of the agreed to seventeen locations.
The company as a result has sued Element 7 and its owners in the Superior Court for the County of Los Angeles in an attempt to get the closing of the arrangement back on track. The firm has also terminated a license development consulting agreement that was entered into by the parties.
A timeline for the closing of the purchase now remains to be seen, with court delays likely to further push out the timeline for the assets being transferred to the company.
Glass House Brands last traded at $4.83 on the Neo Exchange.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.