Special purpose acquisition company Mercer Park Brand Acquisition Corp. (NEO:BRND.A.U) (OTCQX:MRCQF) announced Thursday afternoon it will acquire vertically integrated California cannabis operator Glass House Group for $567 million.
The deal implies a $1.024-billion equity valuation and an approximate enterprise valuation of $691 million. Following the transaction, Glass House Group will be listed on the NEO Exchange under the “GLAS.U” ticker, becoming the largest California cannabis company to date.
The transaction expected to close in first half of 2021.
“When we formed Mercer Park BRND, we aimed to create a platform that could launch the first national cannabis brands in the United States,” said BRND Chairman Jonathan Sandelman. “We view successful cannabis brand-building as a combination of four factors: the ability to control quality biomass at a large scale; produce at the most competitive costs; offer the highest quality products; and deliver the best value proposition to consumers.”
This took the firm to California “with its ideal growing climate and community of talented and experienced growers, and ultimately to Glass House Group and this incredible portfolio of assets and talent.”
Published: April 09, 2021
Founder & Interim Editor of L.A. Cannabis News