Glass House Brands Inc. (CBOE CA: GLAS.A.U) (OTCQX: GLASF) has filed documents for an at-the-market equity program that would allow the California cannabis company to raise up to $25 million through periodic share sales to fund expansion of its cultivation operations.
The Long Beach-based firm already plans to invest approximately $5 million in the fourth quarter toward Phase 3 expansion of its Greenhouse 2 facility, according to a news release Tuesday. The project includes adding blackout curtains, shade screens, gutters and other infrastructure to the 5.5 million-square-foot greenhouse, which already houses nearly 11,000 grow lights.
Glass House, which went public in 2021 and operates the largest cannabis greenhouse in the state, is moving aggressively to increase production capacity after posting record third-quarter results, including a 128% jump in year-over-year cannabis output at an all-time low cost of $103 per pound.
“All three business lines, wholesale biomass, retail and wholesale CPG, achieved positive year-on-year and sequential revenue growth,” CEO Kyle Kazan said in a statement. “As I mentioned on our earnings call, we’ve had many conversations with bankers about raising debt and equity capital over the past six months.”
Once operational, the company expects the upgraded Greenhouse 2 to start generating revenue by the fourth quarter of 2025, with projected annual production of 275,000 pounds of premium cannabis in its first full year.
Glass House said it will strategically time share issuances under the program, citing strong cash flows and no major debt maturities for over two years. ATB Securities Inc. and Canaccord Genuity Corp. will manage the share sales.
“We will take our time in choosing the most advantageous pricing and timing to execute the ATM program and other potential financings,” Kazan noted.
In addition to its sprawling greenhouse operations, Glass House’s vertically integrated portfolio includes retail dispensary chains The Farmacy, Natural Healing Center and The Pottery, as well as cannabis brands like Glass House Farms, PLUS Products, Allswell and Mama Sue Wellness.
Aside from in-state consolidation opportunities, the company has also been exploring potential interstate commerce prospects, eyeing ways to ship its California-grown cannabis to other states under regulatory frameworks that allow hemp-derived products with low delta-9 THC levels but higher amounts of the intoxicating THCA compound.
[[{“value”:”The proceeds will be used to expand its California cultivation facilities and pursue growth opportunities in the state.
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