Cannabis cultivation and retail company Glass House Brands Inc. GLAS GLAS GLASF GHBWF has completed the first tranche of its $15 million Series D preferred stock offering.
What Happened
The Long Beach, California-base company said on Thursday that it had raised $10.9 million of new capital in connection with the first tranche of its non-brokered private placement of shares of Series D Preferred Stock, with a face value of $1,000 per share of GH Group, Inc., a subsidiary of the company.
The issuance of each share of Series D Preferred Stock with a face value of $1,000 per share was accompanied by the delivery of 200 warrants of the company.
Each warrant gives the holder a right to purchase one new equity share in the company's capital for five years from the Initial Issuance at a price of $6 per warrant share.
Why It Matters
The funds raised in the Series D preferred stock offering will be used to expand Glass House Brands' cultivation capabilities, allowing the company to meet the increasing demand for its products.
"The capital from the Series D Preferred Stock has allowed us to begin the retrofit of Greenhouse 5 at the SoCal Farm," Kyle Kazan, the company's co-founder, chairman and CEO, said, as well as expand the nursery in Greenhouse 1.
Glass House Brands owns and operates state-of-the-art indoor and greenhouse cultivation facilities in California, producing a wide range of high-quality cannabis products.
What's Next
The company expects to raise an additional $4.1 million in one or more subsequent closings of tranches under the offering.
The "deal is capped at $15 million and we have commitments for the entire amount," Kazan said.
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Price Action
Glass House's shares traded 0.8919% lower at $3.667 per share at the time of writing at the market close on Thursday afternoon.
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