The Parent Company will place a $50-million investment in southern California’s Glass House Group, which will open discussions to longer-term strategic market agreements. With Glass House Group’s 500,000-plus square feet of greenhouse space and its rapidly expanding retail footprint, future agreements could include greater visibility in the California adult-use cannabis market for The Parent Company’s suite of branded products (including Jay-Z’s MONOGRAM line).
The investment comes at the same time that Glass House Group is executing a business combination with Mercer Park Brand Acquisition Corp., a SPAC that will take Glass House Group public. That transaction is expected to close this summer, upon which The Parent Company’s investment will translate into 6.2% of subordinate voting shares in the combined business.
All told, several major players in the California cannabis landscape are converging. The Parent Company launched in late 2020 as the result of its own SPAC transaction.
“Our focus over the last 100 days has been to continue to scale up our supply chain,” The Parent Company CEO Steve Allan said in a public statement this month. “Our strategic investment accomplishes two important components, gaining access to Glass House’s greenhouse-grown cannabis at attractive pricing and expanding the distribution of our products to their network of retail stores. Our strategy for vertical integration in California required locking in long-term, low-cost cultivation to meet our demand for branded products in our wholesale and direct-to-consumer channels.”
The Parent Company also announced the acquisition of four acres of outdoor cannabis cultivation land affiliated with Soma Rosa Farms.