Announcement underlines Company’s commitment to expanding its retail platform
OAKLAND, Calif. and TORONTO, May 19, 2022 /CNW/ – Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR) (OTCQX: HBORF), a California-focused, vertically integrated cannabis enterprise, today announced that it reached an agreement on May 18, 2022 to acquire (the “Acquisition”) a further 50% ownership interest in its Seaside, California store (the “Seaside Store”). The Acquisition will result in the Company owning all of the issued and outstanding securities of 680 Broadway Master, LLC (the “Membership Interest”), which owns the Seaside Store, bringing the Company’s interest in the Seaside Store to 100%.
The Seaside Store, which is branded under the Urbn Leaf banner, has an unexpected origin, having transformed from a thrift store back in June 2019 into its current contemporary retail cannabis location. The Seaside Store is conveniently located in the heart of Seaside (on Monterey Bay), just off Broadway Avenue. Monterey Aquarium, Fisherman’s Wharf, Ribera Beach, Lovers Point Park and other attractions are located nearby.
A leading retail footprint is fundamental to our objective of becoming one of California’s leading, fully-integrated cannabis companies. We’re excited to acquire full ownership of the Seaside Store, a great location on Monterey Bay that caters to both area residents and tourists.
Ed Schmults, Chief Executive Officer of Harborside
We look forward to further expanding our retail footprint in Northern California.
The Acquisition was the result of a legal settlement with the Company’s former partner in the Seaside Store (the “Former Partner”). As a result, the total cost of the Acquisition was only US$440,000 (the “Total Consideration”), with US$100,000 to be paid upfront (the “First Installment”) and the balance payable over seven years, with US$50,000 being paid on the first to sixth anniversaries of the First Installment, and US$40,000 being paid on the seventh anniversary of the First Installment. To secure the timely payment of the Total Consideration, a security interest in the Membership Interest will be granted to the Former Partner, including all economic rights and governance rights.
Harborside, a vertically integrated enterprise with cannabis licenses covering retail, major brands, distribution, cultivation, nursery and manufacturing, is one of the oldest and most respected cannabis companies in California. Founded in 2006, Harborside was awarded one of the first six medical cannabis licenses granted in the United States. Today, the Company operates 14 dispensaries covering Northern and Southern California and one in Oregon, as well as a manufacturing facility in Oakland, California, distribution facilities in San Jose and Los Angeles, California and integrated cultivation/production facilities in Salinas and Greenfield, California. Harborside is a publicly listed company, currently trading on the Canadian Securities Exchange (“CSE”) under the ticker symbol “HBOR” and the OTCQX under the ticker symbol “HBORF”. The Company continues to play an instrumental role in making cannabis safe and accessible to a broad and diverse community of California and Oregon consumers.