Vireo Growth, Glass House enter California JV

Executive Summary

• Vireo Growth Inc. and Glass House Brands Inc. have entered into a joint venture to establish one of the largest cannabis retail platforms in California.
• The entity will be owned equally (50% each) by both companies, who will contribute their respective California dispensary operations to the venture.
• The platform will integrate Vireo's delivery infrastructure and Glass House's large-scale production capabilities via a preferential supply agreement.

Key Details

• Ownership Structure: 50-per-cent ownership interest for each company.
• Vireo Contributions: 12 dispensaries and home delivery operations (recently acquired from Eaze Inc.).
• Glass House Contributions: 11 California retail locations.
• Supply Agreement: The combined network will be supported by a preferential supply agreement with Glass House Brands.
• Future Equity Terms: After five years, Vireo has the option to acquire Glass House's equity interest in the joint venture; Glass House holds a reciprocal put right.
• Leadership: Cory Azzalino (previously Vireo's president of California) is appointed as CEO of the joint venture.
• Operational Focus: Integration of the Eaze platform to extend distribution into areas with limited retail access and mitigate California pricing dynamics.

Notable Quotes

• Kyle Kazan, Co-founder, Chairman and CEO of Glass House: "Vireo brings exceptional retail reach and delivery infrastructure through the Eaze platform while Glass House contributes proven retail execution, low-cost, large-scale production and deep brand equity."
• John Mazarakis, CEO of Vireo: "Their production scale and brand strength, combined with Vireo's retail depth and access to one of the industry's leading technology-based delivery platforms, creates a joint venture greater than the sum of its parts."
• Cory Azzalino, CEO of the Joint Venture: "Our combined retail and delivery network gives us the reach and resources to bring high-quality, affordable cannabis to consumers across California — including underserved communities."