Glass House Brands Obtains US$100 Million Senior Secured Term Loan

Non-dilutive capital to fund the phased modernization of a 5.5 million square foot grow facility

LONG BEACH, Calif. and TORONTO, December 13, 2021 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.AU) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one vertically integrated and fastest growing cannabis companies in the United States, today announced that they have entered into a senior secured term loan agreement (the “Loan Agreement”) with an investment fund U.S.-based private credit provider (the “Lender”) for up to for $100 million (the “Loan”), with an initial drawdown of $50 million (the “Original Term Loan”). The initial term loan has a variable interest rate currently set at 10% per annum and shall in no event exceed 12% per annum. The gross proceeds of the loan will be used to fund the incremental modernization of the Company’s approximately 5.5 million square foot grow facility currently under renovation at Camarillo, California (the “SoCal Facility”) and for general corporate purposes.

As previously announced, the Company has completed the acquisition of the approximately 160-acre SoCal facility with six onsite greenhouses at September 2021. The SoCal facility includes approximately 125 acres of ultra-modern and efficient KUBO Ultra-Clima greenhouses, an on-site well, water treatment facilities, an automated roof washing system, additional lights and cogeneration facilities natural gas producing electricity, heat and CO2. The company has planned the initial Phase 1 of the modernization of the SoCal facility to include the conversion of two greenhouses, one of which will propagate cuttings or nursery clones to support the entire facility and the other which will will have a capacity of 180,000 pounds of biomass per year. . The Phase I expansion will also include a packing station and distribution center that will support the growth of the company’s wholesale biomass business.

To watch an updated video documenting construction progress at the SoCal facility, please visit

“Since our inception, our vision has been to become the largest cannabis brand building platform in the world. California and this loan agreement provides us with a non-dilutive capital injection to fund the complete renovation of our SoCal facility as we continue to pursue this goal,” said Kyle Kazan, Chairman and CEO of Glass House. “With growing support across the country for cannabis regulatory reform, now is the time for us to improve the availability of our high-quality, sustainably grown product. California cannabis while significantly reducing our COGS through scale and automation. We have a total projected footprint of 6 million square feet and total projected biomass production of approximately 1.7 million pounds, which we believe would make Glass House Brands the largest and most effective in the United States, with a wide margin. With this significant capacity, we will be extremely well positioned to supply cannabis consumers across the country, once this opportunity arises. »

Mr. Kazan added: “I would like to thank our team who have worked tirelessly on this agreement. I am extremely proud of your efforts.

The initial term loan is repayable in monthly installments beginning on December 1, 2023, in an aggregate amount equal to 1.25% of the original principal amount of the original term loan. Two subsequent printings of $25 million (the “Deferred Draw Term Loans”) each will be available at future dates provided certain terms and conditions of the loan agreement have been met and will be repayable in monthly installments commencing on December 1, 2023, to an aggregate amount equal to 1.25% of the original principal amount of the deferred draw term loans. The terms of the loan agreement provide for the creation and issuance of 2,000,000 new equity warrants which will be freely tradable in Canada under the same CUSIP/ISIN as the Company’s existing publicly traded warrants (NEO: GLAS.WT.U; OTCQX: GHBWF), and delivered to the lender at closing, each warrant being exercisable at a price of exercise $11.50 to acquire one Subordinate Voting Share, Restricted Voting Share or Limited Voting Share, as the case may be (NEO: GLAS.AU) until June 26, 2026subject to acceleration or redemption in accordance with the terms of the warrant agency agreement governing the Warrants.

About Glass House Brands
Glass House Brands is one of the fastest growing vertically integrated cannabis companies in the United States, with a particular focus on the California market and build leading and sustainable brands to serve consumers in all segments. From its greenhouse operations to its manufacturing practices, from brand building to retail, the company’s efforts are rooted in respect for people, the environment and the community that co-founds Kyle Kazanchairman and chief executive officer, and Graham Farr, member of the board of directors and president, instilled at the start. Through its brand portfolio, which includes glass trusses, Forbidden Flowers and Mama Sue Wellness, Glass House Brands is committed to achieving its vision of excellence: exceptional cannabis products, produced sustainably, for the benefit of all. For more information and company updates, visit and

Forward-looking statements
This press release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”), including with respect to the use of the proceeds under the Agreement loan; the planned Phase I of the SoCal Facility; the Company’s vision for its cannabis business; the Company’s planned projected footprint and projected biomass; the Company’s belief that it will become by far the largest and most successful supplier of cannabis in the United States; and that the company will be extremely well positioned to supply cannabis consumers across the country once this opportunity arises. Forward-looking statements reflect current expectations or beliefs regarding future events or the future performance of the Company. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is planned”, “budget”, “expected”, “estimates”, “continues “, “forecasts”, “plans”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations or negatives of these words and expressions or declare that certain actions , events or results “may”, “could”, “should”, “should”, “could” or “will” be taken, occur or be carried out. All forward-looking statements, including those herein, are qualified by this warning.

Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those indicated in the statements, including changes in the Company’s plans for its Phase 1 expansion at the SoCal facility; does not respect the Company’s projected footprint or biomass; the Company not achieving the efficiencies or scale expected for its business, among other factors. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained in this press release speak only as of the date of this press release or as of the date or dates specified in such statements.

Investors are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking information. For further information on the Company, investors are encouraged to consult the Company’s public filings on SEDAR at The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Glass House Brands Inc.

For further information: Glass House Brands Inc., John Brebeck, Vice President of Investor Relations, T:(562) 264 5078, [email protected]; Jamin Horn, General Counsel and Corporate Secretary, T: (562) 264 5078, [email protected]; Investor Relations Contact: MATTIO Communications, Tel. : (416) 992-4539, [email protected]

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