Glass House Brands Closes Turlock Natural Healing Center Dispensary Acquisition

Zinger Key Points
  • Consolidation of the Turlock store's financial results into Glass House Brands financials will begin, effective immediately.
  • The opening of the Turlock store expands the Glass House retail footprint to ten stores, from three at the beginning of 2022.

Glass House Brands Inc. GLASF GHBWF GLAS GLAS announced that all local regulatory requirements have been fulfilled for Glass House's acquisition of the Natural Healing Center (NHC) dispensary located in Turlock, California, and that the transaction has officially closed. Consolidation of the financial results of the Turlock store into Glass House's financials will begin effective immediately.

"Closing the Turlock acquisition is another major milestone for Glass House," stated Kyle Kazan, co-founder, chairman and CEO of Glass House Brands. "Turlock is the newest location in the NHC portfolio and well positioned for success as one of only three dispensary licenses in a city with a large California State University campus. Valnette Garcia and the rest of the NHC team have done an outstanding job building a retail brand consistently recognized for its world-class customer experience. In 2021, the other stores we acquired from NHC – Grover Beach, Morro Bay, and Lemoore – were all named "Best Cannabis Dispensary" in their respective areas by Weedmaps.MAPS"

Located at 3401 W Monte Vista Avenue in Turlock, California, the new Natural Healing Center dispensary is in the primary business district just off the Golden State Highway and minutes from Cal State University Stanislaus. The store will begin serving customers by the end of April and the grand opening ribbon cutting ceremony is scheduled for May 19, 2023 at 10:00am PT.

Additional NHC Transaction Details

At the close of each NHC dispensary acquisition, Glass House purchased the businesses or assets of these dispensaries and entered into a 5-year lease at each location with three renewal options for a total term of up to 20 years.

Calculation and payment of consideration for the acquisition of Turlock will occur at the end of its sixth full calendar quarter of operations, at 6x its annualized EBITDA in that quarter. The consideration will be paid 80% in new equity shares priced at the 25-day volume-weighted average price of Glass House equity shares as of the day before the date that the Turlock earnout payment is finally determined, and 20% in the form of an unsecured promissory note bearing interest of 8% annually and maturing after the four-year anniversary of the closing date. The equity shares that may be payable to the NHC sellers as part of the Turlock acquisition are subject to certain escrow holdbacks and generally will be paid out over four years following the closing date if all equity shares are released after the holdback periods expire.

Photo: Benzinga edit with photos by geralt, lindsayfox on Pixabay

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