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Court Sides with Glass House in Cannabis License Dispute

The company's subsidiary filed suit against Element 7 in 2021.

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Glass House

Glass House Brands, a vertically integrated cannabis company, said that earlier this month 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.

In 2021, Glass House subsidiary GH Group has filed suit against Element 7 and its owners Josh Black and Robert "Bobby" DiVito for claims related to the companies' planned merger. GH claimed that E7 had only fully transferred three retail licenses out of a total of 17 licenses that were contractually committed to be transferred under the terms of the merger.

Late last year, Element 7 and GH Group entered into a settlement agreement, where Element 7 agreed to pay GH Group $2,865,000. The deal included a clause entitling Element 7 to a credit of nearly $1 million toward the total payment provide Element 7 paid GH Group $1,865,250 by December 15, 2023. The deal also allowed Element 7 to retain ownership of its retail licenses, and take title in a property from a GH Group affiliate in Firebaugh.

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