Glass House Brands Applauds Cannabis Reform Action

Executive Summary

• The U.S. Trump administration issued an executive order rescheduling cannabis to Schedule III and launching a Medicare CBD reimbursement pilot, creating a potential $30 billion market.
• Glass House Brands anticipates export opportunities, expanded domestic sales, and increased demand for its low‑THC/CBD strains as a result of the regulatory change.
• The company is accelerating cultivation capacity, with record acreage planted and plans to ramp up production in early 2026.

Key Details

• Executive order moves cannabis from Schedule I to Schedule III, enabling broader research, medical use, and export possibilities.
• Medicare pilot will reimburse seniors ($60 M+ eligible) up to $500 per year starting April 2026, projecting a $30 billion market opportunity for CBD products.
• Glass House expects its existing low‑cost, high‑quality cannabinoid production model to position it as a leading supplier to the new federal market.
• The company is developing CBD products that comply with the forthcoming regulations and continues collaboration with UC Berkeley on hemp research focused on medicinal cannabinoids.
• Cultivation footprint has reached record acreage (largest in company history) with plans for further expansion in early 2026.
• Management expressed confidence that Schedule III status will facilitate international export opportunities for U.S.‑grown cannabis.

Notable Quotes

“The executive order to reschedule cannabis to a Schedule III classification and the authorization of a pilot program for Medicare reimbursement of the cannabis compound CBD represent the most important drug reform of the past fifty years.” – Kyle Kazan, Co‑Founder, Chairman & CEO

“We are prepared for the opportunities ahead… our cultivation team has the most acreage planted in the Company’s history and we will continue to expand in early 2026.” – Kyle Kazan