Special purpose acquisition company Mercer Park Brand Acquisition Corp. BRND MRCQF announced Thursday afternoon it will acquire vertically integrated California cannabis operator Glass House Group for $567 million.

The deal implies a $1.024-billion equity valuation and an approximate enterprise valuation of $691 million. Following the transaction, Glass House Group will be listed on the NEO Exchange under the “GLAS.U” ticker, becoming the largest California cannabis company to date.

The transaction expected to close in first half of 2021.

“When we formed Mercer Park BRND, we aimed to create a platform that could launch the first national cannabis brands in the United States,” said BRND Chairman Jonathan Sandelman. “We view successful cannabis brand-building as a combination of four factors: the ability to control quality biomass at a large scale; produce at the most competitive costs; offer the highest quality products; and deliver the best value proposition to consumers.”

This took the firm to California “with its ideal growing climate and community of talented and experienced growers, and ultimately to Glass House Group and this incredible portfolio of assets and talent.”

Glass House boasts “a track record of excellence across all four of these drivers and has established a top ranked flower brand in one of the most competitive cannabis markets in the world," Sandelman said.

In 2017, Mercer Park sponsored the first cannabis SPAC, now Ayr Wellness AYRWF.

Glass House Group’s $567 million valuation is based on 2022 revenue and adjusted EBITDA multiples of 1.7x and 5.5x, respectively.