Glass House Brands Wraps Up Warrant Redemption

LONG BEACH – Glass House Brands Inc. confirmed that it has completed the redemption of all remaining warrants originally issued under a warrant agency agreement dated May 13, 2019, with Odyssey Trust Company serving as the warrant agent throughout the instrument’s life. Under the terms, holders received a small fraction of a share for each warrant rather than exercising them at the original higher price.

The warrants were redeemed on May 28, 2026, at a rate of 0.011826 shares per warrant, with the company ultimately issuing 362,401 redemption shares to cover the approximately 30.6 million warrants that remained outstanding at the time of execution. The move was first telegraphed to the market via a formal redemption notice issued on April 28, 2026.

Had the company not acted, those warrants, each carrying an exercise price of $11.50 per share, would have expired on their own on June 29, 2026. By initiating the redemption rather than allowing natural expiry, Glass House retained control over the timeline and the dilutive mechanics of the process.

The transaction is not large in the grand scheme of the company’s capital structure, but it closes a chapter that stretches back to the pre-merger era, well before Glass House became one of the more closely watched cultivation-focused operators in the California market. The last reported sales price of the shares on the trading day immediately before the redemption notice was $10.46, with no fractional shares issued and all allocations rounded down to the nearest whole number.

On the operational side, Glass House posted Q1 2026 revenue of $40.5 million, with biomass production of 152,000 pounds. The company has reiterated its full-year guidance targeting roughly one million pounds of Cannabis biomass production alongside a cost-of-production target of $95 per pound on a quarterly basis in H2 2026. Full-year net revenue guidance of $235 million to $245 million remains unchanged, though gross margins came in below internal targets during the first quarter, a gap management attributed to production inefficiencies tied to workforce transitions.

The company is also pursuing a retail joint venture with Vireo Growth and exploring licensing partnerships with sectors including tobacco, alcohol, and cosmetics – a sign that Glass House is not confining its long-term thinking to the California wholesale market alone.

The warrant cleanup is a low-drama move, but it reflects a management team that prefers a clean balance sheet going into what could be a regulatory window. With federal rescheduling proceedings underway and interstate commerce conversations opening up, Glass House is making sure its capital structure doesn’t become a distraction. For a company built on low-cost, large-scale cultivation in California, the next 18 months will determine if GHB’s operational discipline can translate into profitability that has so far remained just out of reach.