WE WILL BE HOSTING GLASS HOUSE MANAGEMENT Q&A
Today @ 2PM.
Cannabis Subscribers CLICK HERE for event details (includes video and materials link)
Glass House Brands offers a compelling investment opportunity centered around its significant growth potential within California's cannabis market. The company's strategic and operational enhancements and emphasis on profitability in 2023 further strengthen its position. With its substantial scale, flexibility, and strategically located "unicorn" greenhouse facility, Glass House Brands is well-equipped to navigate the intricacies of California's cannabis industry. These factors also position the company to capitalize on the forthcoming wave of industry expansion driven by the advent of interstate commerce. Please mark your calendars for an exciting event on April 3 at 2 PM as we welcome the distinguished management team of Glasshouse Brands for an in-depth discussion. Our esteemed guests will include Kyle Kazan, Chairman and CEO; Graham Farrar, President; and Mark Vendetti, CFO. With Glasshouse Brands releasing their Q4 & FY2023 last week, this timely conversation will provide invaluable insights into the company's recent performance and strategic outlook for 2024. Join us as we delve into the financial results, explore the company's growth initiatives, and gain a comprehensive understanding of Glasshouse Brands' position in the rapidly evolving cannabis industry.
Here are some of the questions that I will be asking. If you have others, please let me know:
- How did the 2023 California tax law change affect the state's cannabis industry? In your opinion, is the situation in California stabilizing or continuing to deteriorate?
- Could you provide an overview of the significant improvements in Glass House Brands' business model throughout 2023?
- During the earnings call, you mentioned that lawmakers in New Jersey and Arizona have introduced legislation to authorize interstate marijuana commerce, pending a change in federal policy. Could you share any further insights or thoughts on the potential for interstate commerce?
- Can you discuss the significance of Greenhouse 5 and its advanced technologies? How do these technological advancements contribute to the potential for phase 3, and what is your anticipated timeline for this expansion? Can you provide some insight into the expected revenue ramp-up from the new greenhouse in 2024?
- Glass House Brands prioritizes financial prudence by engaging in transactions with dispensaries and demonstrating reliable payment practices, thereby minimizing the risk of bad debt and enhancing financial health. Does this approach also apply to your wholesale business? How many wholesale customers do you have? They are all registered in California? Could you explain how the state of California tracks this aspect of your business?
- Can you elaborate on the changes made to the CPG business, particularly the decision to concentrate on Glass House Farms, PLUS products, and Allswell while discontinuing the Forbidden Flowers and FIELD brands? What are the strategic implications of this shift?
- Selling a 1/8 of Allswell for $9.99 on 4/20 is an incredible price point. Could you discuss the margin profile of this new product?
- In Q4 2023, Glass House Brands achieved a gross margin of 45%, representing a 1400bps increase YoY. Furthermore, the company's gross margin for the full year 2023 grew to 50% from 24% in 2022, highlighting higher ASP, lower cost of production, and better yield. What are your expectations for gross margins in 2024?
- Many cannabis companies are challenging 280e taxes. How much in 280e taxes did you pay in 2023? Where do you stand on this issue?
- How do you feel about the possibility of uplisting to the NYSE if we get Schedule 3?
