Mr. Kyle Kazan reports

GLASS HOUSE BRANDS ANNOUNCES THE FILING OF PROSPECTUS SUPPLEMENT FOR PREVIOUSLY ANNOUNCED AT-THE-MARKET DISTRIBUTION PROGRAM

Further to Glass House Brands Inc.'s news release dated Nov. 13, 2024, it has filed a prospectus supplement to its short-form base shelf prospectus dated May 16, 2024, with the securities regulatory authorities in all provinces and territories of Canada.

Glass House Brands co-founder, chairman and chief executive officer Kyle Kazan stated: "During the third quarter, we delivered record setting results, highlighted by a 128-per-cent year-over-year increase in cannabis production, a record low quarterly cultivation cost of $103 per pound and robust growth in retail and consumer packaged goods. All three business lines, wholesale biomass, retail and wholesale CPG, achieved positive year-on-year and sequential revenue growth. As I mentioned on our earnings call, we've had many conversations with bankers about raising debt and equity capital over the past six months, and we aim to raise approximately $25-million to fund our phase 3 expansion. The ATM program is a part of our fundraising plans. Because we can pay existing obligations from our current operating cash flow and have no upcoming debt maturities for more than two years, we will take our time in choosing the most advantageous pricing and timing to execute the ATM program and other potential financings.

"We are focused on taking advantage of the current market conditions in California to expand market share, and as such, we are moving ahead aggressively with our expansion plans. We expect to spend $5-million in capex related to phase 3 expansion in the fourth quarter of 2024. This retrofit will include the addition of blackout curtains, shade screens, new gutters, a misting system, CO2 systems and grow pipes. We are particularly excited because unlike our other greenhouses, greenhouse 2 has nearly 11,000 lights already installed. We expect to start generating revenue by the fourth quarter of 2025, with production estimated at 275,000 pounds of cannabis in its first full year. Besides the additional production volume, we also believe greenhouse 2 will grow our highest-quality flower and be the most consistent year round thanks to the lights and other additional cultivation tools that will be part of the retrofit. The lights will also mean that its production should be less affected by the seasons and would allow us to take advantage of the cyclically higher prices in the front half of the year."

The prospectus supplement has been filed in connection with the company's previously announced at-the-market distribution program, pursuant to which the company may from time to time sell up to $25-million (U.S.) of its subordinate voting shares, restricted voting shares and limited voting shares.

Since the equity shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the company's management and in accordance with the terms of the equity distribution agreement dated Nov. 13, 2024, among the company, ATB Securities Inc. and Canaccord Genuity Corp. The company currently intends to use the net proceeds of the ATM program, if any, primarily for phase III expansion and/or general corporate purposes.

Sales of equity shares, if any, under the ATM program are anticipated to be made in transactions that are deemed to be at-the-market distributions as defined in National Instrument 44-102 -- Shelf Distributions, as sales made directly on Cboe Canada or any other recognized Canadian marketplace within the meaning of National Instrument 21-101 -- Marketplace Operation.

A copy of the shelf prospectus, the prospectus supplement and the equity distribution agreement may be found on SEDAR+ under the company's issuer profile.

An electronic or paper copy of the shelf prospectus, the prospectus supplement and the equity distribution agreement, and any amendment to the documents, may also be obtained without charge, upon request only, by contacting ATB Securities Inc. by e-mail at atbcm_dealflow@atb.com or from Canaccord Genuity Corp. by e-mail at ecm@cgf.com. The shelf prospectus and prospectus supplement contain important, detailed information about Glass House and the ATM program. Prospective investors should read the shelf prospectus and prospectus supplement before making an investment decision.

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 Kyle Kazan, chairman and chief executive officer, and Graham Farrar, board member and president, instilled at the outset. Whether it be through its portfolio of brands, which includes Glass House Farms, Plus Products, Allswell and Mama Sue Wellness, or its network of retail dispensaries throughout the state of California, which includes The Farmacy, Natural Healing Center and The Pottery, Glass House is committed to realizing its vision of excellence: outstanding cannabis products produced sustainably for the benefit of all.

We seek Safe Harbor.