Glass House Brands Inc. announced a non-brokered private placement of Series D preferred stock with a face value of $1,000 per share of new investor, GH Group, Inc. for the gross proceeds of $15 million on August 23, 2023. The issuance of each share of Series D Preferred Stock with a face value of $1,000 per share was accompanied by the delivery of 200 warrants of the company. Each warrant entitles the holder to purchase one new equity share in the capital of the company for a period of five years from the Initial Issuance at a price of $6.00 per warrant share, subject to customary anti-dilution adjustments. The company has the option to accelerate the expiration of any unexercised warrants if the underlying equity shares of the company trade at a price of at least $12.00 per share for a period of 10 trading days out of a period of any 15 consecutive trading days, subject to customary anti-dilution provisions. The warrants and the warrant shares issuable upon exercise of the warrants are subject to a four-month statutory hold period from the date of issuance of the warrants under applicable Canadian securities laws.

On the same day, the company has raised $10.9 million in its first tranche and expects to raise an additional $4.1 million in one or more subsequent closings of tranches under the offering. Holders of the Series D Preferred Stock will be entitled to an annual cash dividend at a rate of 15% for the first five years after the date of initial issuance of Series D Preferred Stock and 20% annually thereafter.

On November 13, 2023 the company issued 2,180,000 Company warrants in conjunction with the closing of the first tranche of Series D preferred shares.