Glass House Brands Inc. (CBOE: GLAS.A.U) (OTC: GLASF) is seeking approval that could allow it to raise more than half a billion dollars from stock sales to investors north of the border over the next two years.
The Long Beach, California-based firm announced Wednesday that it filed a shelf prospectus with Canadian regulators to allow for the issuance of up to C$782 million (US$576 million) in new equity shares through April 2026.
While Glass House said it has no immediate plans to sell shares, the filing gives it a quick path to raise capital from equity offerings if opportunities arise.
“With our strong operating performance, long-term growth prospects, and increase in share price over the past 18 months, having a base shelf will provide additional flexibility to add growth capital and lower our cost of capital when we judge the time to be right,” Chairman and CEO Kyle Kazan said in a statement. “At that time, we will consider all available options including debt, equity, and preferred equity or any combination.”
California cannabis businesses have limited access to traditional financing sources like bank loans because marijuana remains illegal at the federal level. That’s led some to look to investor-friendly Canada as an alternative funding path while uncertainties remain around federal enforcement and legalization efforts.
Glass House closed out 2023 with $271 million in revenue, a 56% increase from the previous year. The new Canadian shelf prospectus filing did not show any material ongoing litigation or going concern issues for the unprofitable cannabis producer, which was at a net loss and had an accumulated deficit of $209 million as of March 31.
Glass House on Tuesday dropped defamation claims against Catalyst defendants who alleged the company is the “largest black marketeer” of cannabis. This came after a California court in March entered a $2.865 million judgment against Element 7 and its owners in favor of Glass House’s subsidiary GH Group over claims of fraud and breach of contract.
The post Glass House looks to Canada for potential funding, files shelf prospectus to sell shares appeared first on Green Market Report.
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