Cash is king in cannabis now so a $1.9M payday and eliminating ongoing legal fees works here. Glass Houe currently has 10 dispensaries
Look at the following graph below from their investor presentation that shows 2022 predictions for the US cannabis market by state. I have been saying every day for 3 years every prediction for future sales is and will be for some time far too low.
You’ll note Headset, the premier cannabis data aggregator (to date) projected MA would sell $1.7M of cannabis annually by 2025. MA eclipsed that in 2023 as 2024 is ahead of that pace.
This is a $200B + US industry shortly….
The Suit:
Glass House Brands Files Suit Against Element 7 to Enforce Transfer of Contractually Committed Licenses
LONG BEACH, Calif. and TORONTO, Nov. 4, 2021 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.A.U) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest-growing, vertically integrated cannabis companies in the U.S., today announced that its subsidiary GH Group Inc. (“GH Group”) has filed suit in Superior Court for the County of Los Angeles, Central District (Case No. 21STCV40401) against Element 7 CA, LLC (“E7 LLC”) and its principals and owners Josh Black and Robert “Bobby” DiVito (together “Element 7”) for a variety of claims arising from Element 7’s conduct incident to the Merger and Exchange Agreement (the “Merger Agreement”) entered into between GH Group Inc. (“GH Group”) and E7 LLC dated as of February 23, 2021. In addition, GH Group has also given notice to E7 LLC that it is terminating the License Development Consulting Agreement between the parties dated as of February 23, 2021, for cause.
To date, E7 LLC has fully transferred three retail licenses located in Dunsmuir, Hesperia, and Eureka, California (the “Transferred Locations”) out of a total of seventeen licenses that were contractually committed to be transferred under the terms of the Merger Agreement. The Company expects to prevail in the suit and to be able to enforce the transfer of the remaining fourteen retail licenses.
Developing a robust retail footprint across the state of California is a key pillar of Glass House’s vertical integration strategy and is amongst the Company’s top priorities. In addition to bringing on the Transferred Locations, the Company is building out two new dispensaries for which licenses were recently approved in Santa Barbara. The Company is actively working to secure several more locations, in addition to the remaining contractually committed E7 LLC licenses, and will provide an update on its progress as they are confirmed.
The Settlement:
Element 7, APB and GH Group enter into a Settlement and General Mutual Release Agreement
LONG BEACH, Calif. and TORONTO, Nov. 2, 2023 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.A.U) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest-growing, vertically integrated cannabis companies in the U.S., today announced that on September 19, 2023, Element 7, APB and GH Group entered into a Settlement and General Mutual Release Agreement (the “Element 7 Settlement”), where Element 7 agreed to pay GH Group $2,865,000 to settle the Element 7 Proceeding; provided, that if Element 7 pays GH Group $1,865,250 by December 15, 2023, then Element 7 shall be entitled to a credit of $999,750towards the $2,865,000 payment. In addition, Element 7 retains ownership of its retail licenses, and will take title in a property from a GH Group affiliate in Firebaugh in connection with the Element 7 Settlement.
The Court Order:
LONG BEACH, Calif. and TORONTO, March 14, 2024 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.A.U) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest-growing, vertically integrated cannabis companies in the U.S., today announced that on March 6, 2024, the Superior Court of the State of California entered into a Final Judgment and Order against Element 7 for the amount of $2,865,000 in favor of GH Group.
