Mr. Kyle Kazan reports

GLASS HOUSE BRANDS COMPLETES THE ACQUISITION OF THE REMAINING EQUITY OWNERSHIP IN THE POTTERY DISPENSARY

Glass House Brands Inc. has acquired the remaining equity ownership interest of The Pottery Inc., the operating entity of the award-winning The Pottery dispensary. Glass House previously owned 50 per cent of the dispensary business, located at 5042 to 5044, 5048 to 5052 and 5054 to 5058 Venice Blvd., Los Angeles, Calif.

"Over the past year, The Pottery has been cited by several publications, such as LA Weekly, Thrillist, the LA Times and Angeleno, as being one of the best high-end dispensaries in Southern California. We are excited to have acquired the remaining ownership stake," said Kyle Kazan, Glass House chairman and chief executive officer. "Designed with a unique urban aesthetic reflective of its convenient centrally located location, The Pottery provides consumers with elevated and interactive retail experiences. It also has a fully functioning indoor cultivation facility. We are thrilled to acquire the remaining ownership stake in this location, our fourth wholly owned dispensary in the state, and look forward to consolidating its performance in our financial results."

Mr. Kazan added: "We currently expect The Pottery to generate annualized revenue of approximately $3.8-million in the second half of this year. Additionally, we see upside in the Los Angeles market when the city implements a strategy to regulate the estimated thousands of unregulated stores. We are well along the path to executing a dramatic transformation in the size of our retail dispensary business this year. Along with the ongoing ramp-up of phase 1 production at our SoCal facility and the addition of Plus, this further reinforces our trajectory to becoming cash flow positive by early 2023. Glass House had $21.7-million in retail revenues from its three wholly owned dispensaries in 2021. With the addition of The Pottery, plus the three NHC dispensaries to our portfolio, and our new Farmacy dispensaries in Isla Vista, Santa Ynez and Eureka that are all slated to open this year, we will have the potential to nearly triple our annual retail dispensary revenues to more than $60-million. The increased retail footprint is expected to provide a significant revenue opportunity for our [consumer packaged goods] business including Plus."

Under the terms of the purchase agreement, Glass House acquired all of the equity interests of NRO Management LLC and The Pottery for 500,000 equity shares of Glass House set at a fixed price of $6 per share. The shares have a one-year lock-up period from the closing date. As part of the transaction, Glass House also acquired The Pottery's three active state cannabis retailer, distributor and cultivation licences, as well as six city-level adult-use and medical cannabis retailer, distributor and cultivation licences.

About Glass House Brands Inc.

Glass House is one of the fastest-growing, vertically integrated cannabis companies in the United States, with a dedicated focus on the California market and building leading, lasting brands to serve consumers across all segments. From its greenhouse cultivation operations to its manufacturing practices, from brand building to retailing, the company's efforts are rooted in the respect for people, the environment and the community that co-founders Mr. Kazan, and Graham Farrar, board member and president, instilled at the outset. Through its portfolio of brands, which includes Glass House Farms, Forbidden Flowers and Mama Sue Wellness, Glass House is committed to realizing its vision of excellence: outstanding cannabis products, produced sustainably, for the benefit of all.

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