Glass House Brands Inc. (OTCQX: GLASF) (OTCQX: GHBWF) (NEO:GLAS.A.U) (NEO:GLAS.WT.U) closed the first tranche of the non-brokered private placement of series B preferred stock, at face value of $1,000 per share of GH Group, Inc., a subsidiary of the company.

The initial closing of the offering included approximately $14.7 million of new money invested and approximately $22.6 million face value of existing series A preferred stock exchanged for new series B preferred stock. A total of 37,337 shares of series B preferred stock were issued, with an aggregate face value of approximately $37.4 million. The company expects to complete the offering in the next 30 days, after which a total of approximately $50.0 million of series B preferred stock is expected to be outstanding.

"We feel fortunate to have successfully raised capital in this challenging market environment," stated Kyle Kazan, Glass House Brands chairman and CEO. "While the California cannabis industry struggles through commoditization amongst other issues, we are very grateful for the support we have received from our existing preferred stock investors who exchanged their series A preferred stock for this series B preferred stock along with the new investors in this series B preferred stock round. We are thankful for the confidence bestowed on our company and management team. As we close out the remainder of this fundraise, we also are putting our full focus behind our stated target of achieving free cash flow positive operations excluding the capex for phase II of the …

Full story available on Benzinga.com