Venable represented GH Group, Inc. ("Glass House"), one of the fastest-growing vertically integrated cannabis and hemp companies in the U.S., on the completion of its business combination (the "Transaction") with Mercer Park Brand Acquisition Corp., a special-purpose acquisition company (SPAC), to create Glass House Brands Inc., with the intent to focus on branded product businesses in cannabis and/or cannabis-adjacent industries.
Pursuant to the terms of the merger, the combined company has planned expansion to reach more than 6 million square feet of greenhouse cultivation capacity, helping cement Glass House's position as the state's largest cannabis producer and retailer and the largest cannabis producer in the United States by a wide margin. The merger also makes Glass House the latest cannabis producer to list on Canada's NEO exchange.
In addition to its current footprint, Glass House has entered into an agreement to merge with 17 retail licensed entities from Element 7, LLC (Element 7), a retail-focused cannabis company with a proven track record in winning licenses. These licenses are expected to bring the company's retail footprint to a total of 23 storefront retail locations by the end of the first half of 2022, representing the highest statewide store count of any single California cannabis operator.
The Venable team was led by Matthew Portnoff, Dan Straga, and Friedemann Thomma.
Becca Chappell, Alen Aguilar, Audrey Cubizolles, Scott Thompson, Russell Whitman, and Jeff Ostrager also contributed to the effort.
Venable will continue to represent Glass House going forward.
The merger was covered in numerous publications, including Yahoo! Finance.
© 2021 Venable LLP. Using, distributing, possessing, and/or selling marijuana is illegal under existing federal law. Compliance with state law does not guarantee or constitute compliance with federal law. This informational overview is not intended to provide any legal advice or any guidance or assistance in violating federal law.