By Shariq Khan
April 8 (Reuters) – Glass Home Group, California’s largest pot producer, will go public by merging with a blank-check agency that’s backed by trade veteran Jonathan Sandelman, in a deal value greater than $1 billion, sources aware of the matter mentioned on Thursday.
As a part of the deal, Glass Home will take over pot retailer Aspect 7’s licenses in California and purchase a tomato greenhouse within the state with 5.5 million sq. toes of house that will likely be transformed to develop hashish, the sources mentioned.
The addition of the greenhouse will make Glass Home, which presently has a cultivation footprint of over 500,000 sq. toes, the second-biggest hashish grower in the US, simply behind Extremely Well being, in line with information from trade media outlet Greenhouse Grower.
Aspect 7’s licenses will even make Glass Home the most important retailer on this planet’s largest hashish market, California, with round 21 shops by the primary quarter of subsequent yr, the sources mentioned.
The deal could possibly be introduced as quickly as Thursday, three sources mentioned, talking on situation of anonymity because the talks are confidential.
Glass Home joins a number of pot producers trying to record on Canada’s NEO inventory change as rising hopes of nationwide legalization in the US spur firms to faucet public markets for funding potential future progress.
The corporate will merge with Sandelman’s Mercer Park Model Acquisition Corp BRNDau.NLB. Mercer can pay round $570 million in money and inventory, the sources mentioned, including that it had additionally engaged traders for an $85 million personal funding in public fairness.
Mercer is Sandelman’s second blank-check agency, or SPAC – shell firms which elevate funds in an preliminary public providing with the purpose of merging with an unidentified personal firm.
Sandelman’s earlier SPAC, Hashish Methods Acquisition Corp, was the primary such automobile listed on the NEO change that took U.S. multi-state hashish operator Ayr Wellness Inc AYRa.CD public in 2019. An ex-Financial institution of America government, Sandelman now serves as CEO of Ayr.
California’s pot gross sales surgehttps://tmsnrt.rs/3sYaeDk
New York’s pot legalization provides urgency to U.S. reform calls
(Reporting by Shariq Khan in Bengaluru; Modifying by Anil D’Silva)
(([email protected]; Inside U.S.+1 646 223 8780, exterior U.S. +91 80 6182 2681; Twitter: @shariqrtrs;))
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.