GLASF News & Events

Glass House Brands announced with great sadness the passing of Mr. George Raveling, a valued member of the Company's Board of Directors and the Glass House family.

Glass House Brands announced updates to recent events. The company said, "On July 10, federal officers led by US Immigration and Customs Enforcement in the Department of Homeland Security raided two of the Company's farms. A federal search warrant was served authorizing the search for evidence of possible immigration violations under Title 8 of the United States Code. Very few documents were seized pursuant to the search warrant. The government and media have reported that approximately 360 individuals were detained or arrested during the raids for immigration violations. The Company has been unable to verify the actual number or the identities of those detained. Nine employees of the Company were detained or arrested. Any other individuals detained or arrested would have been either employees of third-party contractors providing services at the Company's Camarillo farm, including the Farm Labor Contractors providing labor for the agricultural operations, or were unassociated with the Company. Third-party Farm Labor Contractors were required by agreement to ensure that each of their employees assigned to one of the Company's facilities must be twenty-one and older and have valid work authorization. Federal authorities have reported that approximately eleven minors, ranging in age from 14 to 17 years old, were detained during the raids. While the identities of the alleged minors have not been disclosed, the Company has been able to determine that, if those reports are true, none of them were Glass House employees. Federal labor law and California labor law permit minors as young as 12 years old to work in agriculture. As required by California cannabis regulations, however, the Company requires that no one under the age of 21 work in any facility, and that the third-party Farm Labor Contractors verify and ensure that all workers they hire and assign to the Company's facilities are over the age of 21. An employee of the security contractor for the Camarillo facility, George Retes, was reportedly detained for three days without charges. One employee of a third-party contractor, Jaime Alanis Garcia, died from injuries sustained during the raid. The media also reported that violent protests broke out outside the law enforcement barricades in response to the raids and resulting detentions/arrests. It is the Company's belief that no employees of the Company were in any way involved in the protests. To the Company's knowledge, none of the individuals working at the Company's facilities on July 10 were paid less than either the federal or California minimum wage. The Company has always paid a competitive and legal wage for workers, including both its employees and any third-party workers. For the first six months of 2025, labor contractors were paid an average net hourly rate of approximately $18.60 per hour. The net hourly rate was more than 12% higher than California's minimum wage requirement and 2.2x higher than the federal minimum wage. Subsequent to July 10th, the Company has undergone significant changes. The Company terminated its relationship with the two Farm Labor Contractors providing workers for its farms. The Company has revised its Farm Labor Contractor agreements to ensure that their compliance processes are best in class and in accordance with the latest Company standards. The Company has engaged new Farm Labor Contractors to provide workers pursuant to the best in class agreements. The Company has required the two Farm Labor Contractors who had been terminated to agree to and implement the new enhanced compliance procedures before any of its workers would be allowed access to Glass House facilities. The Company has made significant changes to labor practices that are above and beyond legal requirements. Since July 10, the Company has hired leading compliance consultants Guidepost Services, led by former Director of ICE and Assistant Secretary of Homeland Security Julie Myers Wood, to assist the Company's counsel with implementing best practices for determining employment eligibility for its employees and for ensuring eligibility of employees of contractors. All employees of the Company and Farm labor are now E-verified and the underlying documents are reviewed by experts for validity and age gating. The Company has enhanced age gating controls for everyone entering the farms including contracted employees, 3rd party vendors, visitors, customers, and employees of the Company. The Company has signed a Labor Peace Agreement for its license-holding entities with the International Brotherhood of Teamsters, the largest labor organization in the United States. The agreement allows for the Teamsters to present to employees throughout the Company and the Company will cooperate with those efforts."

Glass House Brands announces the mailing of its management information circular and related materials to shareholders in connection with the upcoming annual and special meeting of shareholders, to be held on June 20, where disinterested shareholders will be asked to approve Performance Awards associated with the establishment of a long-term management incentive plan and a related increase in the share reserve of the Company's equity incentive plan. On May 15, subject to Disinterested Shareholder and applicable exchange approval, the Board of Directors approved an initial long-term management incentive plan granting to each of Kyle Kazan, Co-Founder, Chairman and CEO, Graham Farrar, President, Mark Vendetti, CFO, Hilal Tabsh, Chief Revenue Officer, and Benjamin Vega, General Counsel and Corporate Secretary certain performance-based restricted stock units that vest only if the Company achieves certain share price milestones and the Recipients meet certain time-based vesting requirements. Vesting of the Performance Awards will occur over a five-year period and is dependent on the Recipients leading the Company to achieve a minimum $30.00 price per share, with further incremental vesting if the share price reaches or exceeds $60.00 per share. On May 14, 2025, the day prior to the Grant Date, the closing price per share was $6.51. The Performance Awards are designed to provide the Recipients with incentives linked to significant long-term shareholder value creation. In aggregate, 3,000,000 performance-based RSUs were granted, representing approximately 2.3% of the fully diluted share-count as of May 14, 2025 assuming the exercise of all outstanding warrants and achievement of a $60.00 share price. Share price performance targets will be measured quarterly using a volume weighted average trading price. Vesting is tied to growth in share price, rather than increases in market capitalization, to align the Performance Awards with long-term shareholder interests and encourage a continued, disciplined approach to treasury management and shares outstanding. Subject to certain limited exceptions, vesting of the Performance Awards is also conditional upon the Recipients' continued service in senior executive roles for a minimum of three years following the Grant Date. Payout of vested Performance Awards will be deferred until the end of the fourth and fifth years, respectively, following the Grant Date. In determining whether to grant the Performance Awards, the Board established a special committee comprised of independent directors to develop and assess the efficacy of granting such awards, including its risks and alternatives, and to ensure that the grant of such awards to the Recipients would be in the best interests of the Company. The Special Committee retained Hugessen Consulting, an independent compensation consultant, as advisor.

Glass House Brands and LEEF Brands announced a Management Services Agreement, MSA. Under the MSA, Glass House will manage operation of LEEF's Palm Desert, CA dispensary "The LEAF El Paseo" on behalf of LEEF. This mutually beneficial agreement grants Glass House exclusive rights to manage all dispensary operations, including, but not limited to, the sale of cannabis products, the purchase of cannabis product inventory, and employee management, for an initial period of one year, with the potential for extension. This agreement is the first of Glass House's retail management services which it began offering in 2024.