By Shariq Khan
April 8 (Reuters) – Glass Home Group, California’s largest pot producer, mentioned on Thursday it will go public by merging with a blank-check agency backed by business veteran Jonathan Sandelman, in a deal value greater than $1 billion.
The corporate’s merger with Sandelman’s Mercer Park Model Acquisition Corp BRNDau.NLB makes it the most recent pot producer to listing on Canada’s NEO alternate, a favourite vacation spot for firms trying to elevate funds for assembly untapped demand for marijuana from potential U.S. federal legalization.
Underneath the deal, Glass Home would purchase licenses of pot retailer Component 7 in California and purchase a 5.5 million-square- foot greenhouse that will be transformed to develop hashish, serving to it cement its place because the state’s greatest producer and retailer.
The corporate expects to have a complete of 21 retail shops within the state by the primary quarter of subsequent 12 months, it mentioned in a press release.
Sandelman mentioned the corporate’s concentrate on California – the biggest hashish market on the earth – signifies that federal legalization wouldn’t be essential to its success.
“It’s rational that (hashish) ought to be federally legalized in some unspecified time in the future … However we’re not dependent for that to occur with the best way that we constructed this enterprise,” Sandelman mentioned in an interview.
“Let’s discuss who would be capable to compete with this scale – no person,” he mentioned.
An ex-Financial institution of America govt, Sandelman is now chief govt officer of U.S. multi-state hashish operator Ayr Wellness Inc AYRa.CD and can proceed to concentrate on that firm.
Mercer is Sandelman’s second blank-check agency, or SPAC – shell firms which elevate funds in an preliminary public providing to merge with an unidentified non-public firm.
Glass Home co-founder Kyle Kazan, who would be the CEO of the mixed entity, mentioned proper now his firm was a bit weighted towards manufacturing of the biomass.
“We will want so as to add manufacturing, and we’re already in discussions to think about our choices on that,” Kazan mentioned.
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(Reporting by Shariq Khan in Bengaluru; Modifying by Anil D’Silva)
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