Vertically integrated California cannabis company Glass House Brands is borrowing up to $100 million to retrofit its recently acquired California greenhouse and more.
Under the senior secured term loan, Glass House initially will borrow $50 million from an unspecified “U.S.-based private credit investment fund,” according to a news release issued Monday.
Further loans of $25 million will be available under certain conditions.
The loans, repayable beginning in December 2023, will carry a variable interest rate of 10%-12% annually.
Glass House will issue 2 million new warrants to the lender, with each warrant exercisable to acquire a Glass House share until June 2026.
The capital “will be used to fund the phased retrofit of (Glass House’s) approximately 5.5 million square feet cultivation facility currently under renovation in Camarillo, California” as well as for general corporate purposes, the company said.
Glass House acquired the property for $93 million in September.
The Long Beach-based firm said its initial facility retrofit will include converting two greenhouses, as well as creating a packhouse and a distribution center” to support Glass House’s biomass business.
“We have a planned total footprint of 6 million square feet and projected total biomass production of approximately 1.7 million pounds, which we believe would make Glass House Brands the largest and most efficient cannabis supplier in the U.S., by a wide margin,” Glass House CEO Kyle Kazan said in a statement.
“With this significant capacity we will be extremely well-positioned to supply cannabis consumers across the country, once that opportunity arises.”
Business leaders need reliable industry data and in-depth analysis to make smart investments and informed decisions in these uncertain economic times.
Get your 2023 MJBiz Factbook now!
- 200+ pages and 50 charts with key data points
- State-by-state guide to regulations, taxes & opportunities
- Segmented research reports for the marijuana + hemp industries
- Accurate financial forecasts + investment trends
Stay ahead of the curve and avoid costly missteps in the rapidly evolving cannabis industry.
Glass House Brands was created after special purpose acquisition company Mercer Park Brand Acquisition Corp. acquired Glass House Group in April.