Glass House acquired PLUS for approximately $25.6 million through a combination of unsecured convertible debt and equity, plus additional performance-based consideration.
"With a mission to create the largest cannabis brand-building platform in California, we are thrilled to announce the closing of our PLUS acquisition, positioning Glass House as the only company with a Top 5 position in both the flower and edibles segments in the California market," said Kyle Kazan, Glass House's chairman and CEO. "Edibles are a key component of our growth strategy as we further expand our product portfolio and build stronger brand awareness. We are incredibly excited to begin our work with the PLUS team to expand the presence of their premium products in our own retail stores and across our distribution network. The combination of our existing brand platform with PLUS will result in a substantial increase in our total addressable market opportunity (TAM) in California, and eventually, across the U.S. The overlap between Glass House Brands' active accounts and those of PLUS was less than 25% in the first quarter, with Glass House being stronger in Southern California and PLUS stronger in Northern California. Additionally, we aim to grow the PLUS brand nationally, which would expand its TAM by roughly 550% versus operating in California alone."