The Greatest Guide To Glass House Farms - The Ithacan

If I'm Anheuser Busch or Phillip Morris, I'm looking for management excellence and size and scale. Solution Can Be Seen Here need to believe that Glass Home is my first call. The very first agenda for Glass House will be to control the biggest market in the U.S., which is California. The state's marijuana market is two times the size the 2nd largest, Colorado.

Nothing in their existing plan needs or rely on it, however if it does occur, the advantage will become genuinely amazing. The optionality behind Glass Home is what is so appealing. At $10 per share, Glass House has an approximate business value of less than $700 million. And that enterprise value is with Glass Home owning all of its property outright.

My single finest financial investment in 2015 was not just buying AYR Health (Canada: AYR, OTC: AYRWF) at $4. 50, but likewise purchasing AYR warrants for $1. Every SPAC (Special Purpose Acquisition Corporation) normally has both publicly traded typical systems and warrants that transform at a price of $11. 50 per share (sometimes the numbers change).

As a pointer the very same SPAC group behind AYR lags the Mercer Park/Glass Home combination. Not only are the Mercer Park common units engaging however owning a warrant (Canada: BRND.wt, OTC: MRCWF) that doesn't end for 5 years for this management team with an irreplaceable greenhouse property resembles having a nearly complimentary call choice on the future of marijuana.

I have actually been doubtful about a few marijuana companies and SPACs in basic, however a circumstance like Glass Home is how a SPAC can actually create value. They are taking a remarkable management group and supercharging it with an irreplaceable property that can be scaled. The Glass House Group are rolling in their whole business and only accepting stock, and each and every single worker in the company has actually been granted stock alternatives.

As investors are familiar with this management group and this incredible greenhouse, I expect this SPAC to do the reverse of many SPACs, which speculatively pop and after that fade. I like living in Santa Barbara, however never anticipated living here would be a competitive advantage. Sophisticated investors in Santa Barbara are loading up.