Harborside Inc. Announces a Private Placement of Equity Units of up to US$10 Million Concurrently with Announcement of M&A Transactions

Strong Support from Existing Investors to Support the Pro-Forma Combined Company Following the Concurrent M&A Transactions

OAKLAND, Calif. and TORONTO, ON, Nov. 29, 2021 /CNW/ – Harborside Inc. (“Harborside”, or the “Company”) (CSE: HBOR) (OTCQX: HBORF), a California-focused, vertically-integrated cannabis enterprise, today announced a non-brokered private placement of units (the “Units”) of the Company (the “Offering”) at a price of C$0.79 per SVS Unit (as defined below) for gross proceeds of up to US$10 million.

Each Unit issued will be comprised of one subordinate voting share of the Company (the “Subordinate Voting Shares”) and one Subordinate Voting Share purchase warrant (each a “Warrant”) of the Company. Each Warrant will be exercisable to acquire one Subordinate Voting Share of the Company (a “Warrant Share”) for a period of 60 months following the closing date of the Offering (the “Closing Date”) at an exercise price of C$0.79 per Warrant Share, subject to adjustment and acceleration in certain events.

The Company has also announced today that it has entered into definitive agreements (the “Definitive Agreements”) to acquire LPF JV Corporation (“Loudpack”), a leading manufacturer, cultivator and distributor of award-winning cannabis brands in California, and UL Holdings Inc. (“Urbn Leaf”), a top California cannabis retailer with a dominant position in Southern California (collectively, the “Transactions”). On completion of the Transactions, Harborside is expected to be renamed StateHouse Holdings (“StateHouse”), subject to shareholder and regulatory approval. Further details on the Transactions are provided in a separate press release issued concurrently.

To the extent the strategic combination with Urbn Leaf and Loudpack is completed, the proceeds from the Offering will be used for growth capital of the combined entity. Otherwise, proceeds of the Offering will be used for general corporate and working capital purposes of Harborside.

Subject to customary closing conditions, including applicable CSE approvals, the Offering is expected to close on or about December 15, 2021 (the “Closing Date”), or such other date as the Company and the Agents may agree.

As certain insiders and other related parties of the Company will be participating in the Offering, it is deemed to be a “related party transaction” as defined under Multilateral Instrument 61-101—Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61- 101 (pursuant to subsections 5.5(a) and 5.7(a)) as the fair market value of the securities distributed to, and the consideration received from, related parties will not exceed 25% of the Company’s market capitalization.

For the latest news, activities, and media coverage, please visit the Harborside corporate website at http://www.investharborside.com or connect with us on LinkedIn, Facebook, and Twitter.

About Harborside:

Harborside Inc. is one of the oldest and most respected cannabis businesses in California, operating three of the major dispensaries in the San Francisco Bay Area, a dispensary in the Palm Springs area outfitted with Southern California’s only cannabis drive-thru window, a dispensary in Oregon, a cultivation/production facility in Salinas, California, a manufacturing facility in Oakland, California and distribution hubs in San Jose and Los Angeles, California. The Company sells its Fuzzies, Sublime, KEY and Harborside Farms branded consumer products through third party retailers and delivery outlets across the state of California, as well as in its own stores. Harborside has played an instrumental role in making cannabis safe and accessible to a broad and diverse community of California consumers since 2006, when it was awarded one of the first six cannabis licenses granted in the United States. Today, the Company holds cannabis licenses for in-store retail, delivery, distribution, cultivation, nursery and manufacturing. Harborside is currently a publicly listed company on the Canadian Securities Exchange (“CSE”) trading under the ticker symbol “HBOR” and on the OTCQX Best Market under the ticker symbol “HBORF”. Additional information regarding Harborside is available under Harborside’s SEDAR profile at www.sedar.com.

About Urbn Leaf:

Founded in 2016 by entrepreneur Will Send, Urbn Leaf is an omni-channel retailer of the highest quality cannabis products available in California. The company first opened its Feel Good Boutique to the public with one store in San Diego in 2018 and has since grown to include seven retail locations and delivery options. The company employs 400 employees, including passionate budtenders who educate guests on the product line including bestsellers like Raw Garden, Kurvana, Kiva, Jeeter and Cannabiotix as well as Urbn Leaf’s own branded products.

About Loudpack:

Loudpack is a leading privately-held, vertically-integrated cannabis company headquartered in Los Angeles, with a cultivation, manufacturing, processing and distribution footprint across California. A brands-first organization, Loudpack has been built to consistently produce and deliver its high-quality branded product at scale. Sold and self-distributed to retailers statewide in California, Loudpack’s house of brands cover nearly every form factor. The Company’s brands distributed in California include Kingpen, Loudpack, Dimebag, and Smokiez. For more information, visit https://www.loudpack.com.

Original press release

Published by NCV Newswire
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