TPCO Holdings (NEO: GRAM.u), whom does business as The Parent Company, is evidently looking to grow its stake in the California market. The company this morning announced that it is making a US$50 million investment into Mercer Park Brand Acquisition Corp (NEO: BRND.a.u), which is the SPAC behind Glass House Group.
The arrangement will see The Parent Company invest $50 million within Glass House’s outstanding equity private placement related to its go public transaction, raising the total value of that transaction from $85 million to $135 million. The investment is expected to close with the closing of the Glass House Group’s go public transaction.
Also announced this morning is that the two firms have entered into a letter of intent for a long term supply arrangement, whereby TPCO will source premium flower and trim from Glass House. An LOI for a retail distribution has also been signed, which would see TPCO’s product sold across Glass House’s retail locations. The arrangement is expected to advance the expansion of Glass House’s Southern California greenhouse.
“California is the largest and most discerning cannabis market in the world. We are thrilled to have sourced an aligned 10-year supply partnership with Glass House, as well as to have our branded products in Glass House retail stores for years to come.”Steve Allen, CEO of TPCO Holdings
TPCO Holdings last traded at $6.99 on the Neo.
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