Glass House closes another natural healing center dispensary

Glass house brands (OTCQX: GLASF) is a step closer to strengthening its support for mergers and acquisitions.

The company finalized its acquisition of the natural healing center (NHC) dispensary located at Morro Bay, California, after obtaining local regulatory approvals. Consolidation of the financial results of the Morro Bay store in Glass House finance will be effective immediately, so Glass House will end the third quarter with seven retail dispensaries.

Glass House said in May it had entered into definitive agreements to acquire 100% equity interests in three retail assets of the Natural Healing Center in California: two operating dispensaries in Lemoore and Morro Bay, as well as a retail dispensary at Turlock Opening scheduled for the fourth quarter.

The company close it NHC Grover Beach and Lemoore dispensaries last week.

The Glass House CEO previously said this year that he would embark on an aggressive acquisition spree this year.

“As we stated when announcing the signing of definitive agreements for the NHC transaction, this acquisition will further advance us in our goal to become one of the largest retailers in the world.state of californiaadds additional support to our recently acquired PLUS the edibles business and provides additional opportunities for CPG sales as the SoCal Farm continues to ramp up production,” said Glass House CEO. Kyle Kazan.

“Given NHC’s positioning in limited licensing markets and its strong customer base, we are excited to add these four dispensaries to our retail portfolio. The transaction with NHC should be immediately accretive for Glass House, both in terms of revenue and EBITDA.

Glass House will enter into a 5-year lease at each location with three renewal options for a total term of up to 20 years.

Closure of the Turlock store, the remaining NHC dispensary transaction, is dependent on approval of the transfer of ownership by local regulators and is additionally subject to certain customary closing conditions, such as a seal of approval from the NEO Exchange.

Glass House said it plans to issue approximately 2 million new shares as part of the closing of the Morro Bay acquisition. These shares will all be issued to $4.41 per share, the 25-day volume-weighted average price for shares of Glass House Brands traded on the NEO Exchange at May 12, the date the final agreements were signed.

Up to an additional $500,000 of equity shares may be payable to the sellers of NHC subject to certain contractual locks and escrow holds. These are usually paid over two years if all shares are released after the lock-up and hold periods have expired. Sellers are also subject to certain contractual early release triggers, the company said.

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