Mr. Kyle Kazan of Glass House reports

GLASS HOUSE BRANDS AND LEEF ANNOUNCE MSA FOR THE LEAF EL PASEO DISPENSARY AND OFF-TAKE AGREEMENT

Glass House Brands Inc. and Leef Brands Inc. have signed a management service agreement. Under the MSA, Glass House will manage the operation of Leef's Palm Desert, Calif., dispensary, "the Leaf El Paseo," on behalf of Leef.

This mutually beneficial agreement grants Glass House exclusive rights to manage all dispensary operations, including, but not limited to, the sale of cannabis products, the purchase of cannabis product inventory and employee management for an initial period of one year, with the potential for extension. This agreement is the first of Glass House's retail management services, which it began offering in 2024.

Glass House will assume daily management responsibilities of the Leaf El Paseo, allowing Glass House to expand its retail operations in California, while enabling Leef to focus on its core business as a premier concentrate provider. The agreement includes an offtake agreement from Glass House to Leef, securing a significant portion of the annual raw cannabis material required to power Leef's extraction lines.

"We are excited to work with Leef, a respected peer in California under this agreement, as we expand our exposure to the Palm Springs market for both retail and wholesale contributions," said Kyle Kazan, co-founder, chairman and chief executive officer of Glass House Brands. "This MSA agreement represents the continued development of our retail operation, and reflects our strength and overall solid position in the California market. Through execution and on the benefit of the strategic pricing initiatives that we implemented last year, our retail team has seen same-store-sales increase on an annualized basis for five consecutive quarters despite continued challenging market conditions, and, in our most recent quarter, retail revenue growth outperformed the California market by more than 30 per cent, and, as all of our decisions are based on what is best for the cannabis consumer, offering our loyalty program to another great area of California is a tremendous win. Plus Palm Desert is a well-known vacation area."

"Collaborating with Glass House Brands elevates the Leaf El Paseo and secures a favourable offtake agreement that fulfills a significant portion of our annual supply chain needs for our extraction business," said Micah Anderson, chief executive officer of Leef Brands. "This partnership is a true win-win, allowing Leef to sharpen our focus on being a leading concentrate provider, while enabling Glass House to expand its retail footprint in California. This agreement strengthens Leef's production capacity and lays the foundation for broader strategic partnerships with Glass House."

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 Mr. Kazan 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.

About Leef Brands Inc.

Leef Brands is a leading California-based extraction and manufacturing cannabis company, recognized for its large-scale vertical integration and as one of the state's most sophisticated operators. With a comprehensive supply chain, cutting-edge manufacturing processes and a dynamic bulk concentrate portfolio, Leef powers some of the largest brands in the country.

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