The Parent Co.’s planned $50 million strategic investment in California cannabis company Glass House Group has been broken off.
The Parent Co., based in New York, did not give a reason for the deal’s termination in a news release, beyond saying that it was “terminated by the parties effective (July 2) and the strategic investment will not be completed at this time.”
According to the released, The Parent Co. “will consider future partnership opportunities as Glass House purchases and completes the retrofit of its greenhouse cultivation facility in southern California.”
The investment, announced in May, would have seen The Parent Co. buy a 6.2% stake in Glass House in exchange for access to cannabis supply from Glass House and retail shelf space for Parent Co. products in Glass House retail stores.
Glass House was recently acquired by Mercer Park Brand Acquisition Corp., an acquisition that was already in the works when The Parent Co. and Glasshouse announced the investment deal.