Glass House applauds U.S. cannabis reform action

Executive Summary

• Glass House Brands Inc. publicly supports the Trump administration's executive order to reschedule cannabis to Schedule III and authorize a Medicare pilot program for CBD reimbursement.
• The company highlights the potential for significant market expansion, specifically noting a $30-billion market opportunity created by the proposed $500/year Medicare reimbursement for seniors starting in April 2026.
• Glass House asserts its readiness to capitalize on these changes, citing existing CBD/low-THC strains in California, a research partnership with UC Berkeley, and record cultivation acreage.

Key Details

• Regulatory Action: The release references an executive order to reschedule cannabis to Schedule III and a pilot program for Medicare reimbursement of the cannabis compound CBD.
• Market Impact: The company estimates the CBD reimbursement program creates a market exceeding $30 billion, targeting 60-plus million seniors on Medicare.
• Reimbursement Terms: The proposed program would allow eligible seniors $500 per year of reimbursement beginning in April 2026.
• Company Positioning: Glass House claims to be "uniquely qualified" to participate in the growth of the U.S. CBD market due to its low-cost, high-quality production model.
• Operational Status:
  • The company has existing CBD/low-THC strains in the California market that it believes comply with new federal regulations.
  • Active development of CBD products is underway.
  • The company maintains a hemp research partnership with the University of California Berkeley.
  • Cultivation team has the most acreage planted in the company's history.
  • Ramp-up efforts are progressing, and the company plans to expand in early 2026.

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 [cannabidiol] represent the most important drug reform of the past 50 years." — Kyle Kazan, Co-founder, Chairman and CEO
• "Specifically, we are confident that Schedule III under the current administration can provide export opportunities into international markets and note that Glass House is uniquely qualified to participate in the growth opportunities ahead for the U.S. CBD market." — Kyle Kazan
• "We are prepared for the opportunities ahead, our ramp-up efforts of the past few months continue to progress, and we are again fully planted with our legacy greenhouses." — Kyle Kazan