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Mercer Park and Glass House Announce Business Combination to Create Largest Cannabis Brand-Building Platform in California

04/08/2021

On April 8, 2021, Mercer Park Brand Acquisition Corp., a special purpose acquisition company (SPAC), entered into a definitive agreement to acquire Glass House and all related assets for total consideration of approximately US$567 million.

Combined with the proposed combination with the Southern California Greenhouse asset that Glass House has an agreement to acquire and 17 proposed Element 7 retail licences that Glass House has an agreement to merge with, Glass House is poised to become the largest, vertically integrated brand-building platform in California, the world’s largest cannabis market.

The full consideration amount of US$567 million includes US$325 million for Glass House, US$219 million for Southern California Greenhouse and US$24 million for the Element 7 retail licences.

The transaction is expected to close in the first half of 2021.

Cassels is acting as Canadian counsel for Glass House.

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RELATED EXPERTISE: Securities | Mergers & Acquisitions | Cannabis | Taxation