Glass House and Vireo Growth are combining their California cannabis retail operations into a joint venture with expanded reach. Each company will own 50% of the new business.
Glass House currently operates 11 California retail locations, and Vireo operates 12 dispensaries and home delivery operations recently acquired from Eaze. The combined network will be supported by a preferential supply agreement with Glass House, one of California's largest cannabis producers.
After five years, Vireo will have the option to acquire Glass House’s equity interest in the joint venture, and Glass House will have a reciprocal put right.
Cory Azzalino, Vireo's president of California and former CEO of Eaze, has been tapped to run the joint venture, where he will oversee operations and lead the platform's retail acquisition and expansion strategy.
"California remains the world's largest legal cannabis market, and this joint venture allows us to unlock its potential in a way neither company could achieve alone," said Glass House CEO Kyle Kazan in a statement. "Vireo brings exceptional retail reach and delivery infrastructure through the Eaze platform, while Glass House contributes proven retail execution, low-cost, large-scale production and deep brand equity. Together with Vireo, we have found a way to mitigate difficult California pricing dynamics and enhance the value of our retail operations without broadening the focus from Glass House’s primary goal of seeking out and selling our biomass into new legal markets outside the state.”
"Glass House is the ideal partner to collaborate with to build the future of California cannabis retail," said Vireo CEO John Mazarakis in a statement. "Their production scale and brand strength, combined with Vireo's retail depth and access to one of the industry’s leading technology-based delivery platforms, creates a joint venture greater than the sum of its parts — one built to serve more consumers, support independent brands, and offer a compelling home for operators looking for a strong, well-capitalized partner."
