Cannabis company Glass House Brands Inc. announced on Monday it had secured a $100 million loan from an unnamed U.S.-based private credit investment fund.
The initial $50 million draw will be used to fund the phased retrofit of the company’s 5.5 million-square-foot cultivation facility currently under renovation in Camarillo and for general corporate purposes, it said in a release.
Two subsequent draws of $25 million each will be available at future dates provided certain terms and conditions under the loan agreement have been met, the release stated.
Glass House in Long Beach announced in September it had bought the 160-acre property in Ventura County for $93 million. The property at 645 W. Laguna Road consists of six greenhouses and two packing houses totaling about 5.5 million square feet.
Phase one of the project will have renovations made to two of the six greenhouses. Upgrades to the buildings will include automated nutrient delivery and irrigation systems; an improved HVAC system to optimize climate conditions; and installation of black-out curtains, a high-density gutter system, dry rooms and processing facilities.
The upgrades are expected to be completed in the first quarter of next year.
Kyle Kazan, chief executive of Glass House, said that since the company’s inception it had been its vision to become the largest cannabis brand-building platform in California and the loan agreement provides an infusion of capital to fund the complete retrofit of the Camarillo facility as it continues to pursue that goal.
“We have a planned total footprint of 6 million square feet and projected total biomass production of approximately 1.7 million pounds, which we believe would make Glass House Brands the largest and most efficient cannabis supplier in the U.S., by a wide margin,” Kazan said in a statement. “With this significant capacity we will be extremely well-positioned to supply cannabis consumers across the country, once that opportunity arises.”
In addition to the Camarillo grow facility, Glass House also has 500,000 square feet of cultivation space near Carpinteria in Santa Barbara County.