Harborside Inc. Announces Conversion of US$5.87 Million Promissory Note to Equity
– Company also announces option grants to management –
OAKLAND, Calif. and TORONTO, April 29, 2022 /PRNewswire/ – Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR) (OTCQX: HBORF), a California-focused, vertically integrated cannabis enterprise, today announced that a promissory note in the amount of US$6.23 million (the “Note”), which includes principal, interest and fees, has been repaid by: (i) a cash payment in the amount of US$358,541.10; and (ii) the issuance of US$5.87 million worth of subordinate voting shares (“SVS”) of Harborside at a price of US$0.35/Cdn$0.45 per SVS, that being 16,660,993 SVS. The Note, which was issued in July 2021 by UL Holdings Inc. (“Urbn Leaf”) in relation to a bridge financing, is now considered to be paid in full and is no longer outstanding.
We are delighted that holder of the Note elected to convert the Note into Harborside equity.
Ed Schmults, Chief Executive Officer of Harborside
This show of support for the Company underlines the potential we are unlocking through the recent business combinations with both Urbn Leaf and Loudpack. The Company, to be renamed StateHouse Holdings Inc., is now one of the largest vertically integrated cannabis enterprises in California and represents an ideal platform to consolidate the industry.
Harborside also announced the grant of options to certain members of management to purchase up to an aggregate 1,540,000 SVS. The options are exercisable at the greater of Cdn$0.75 per SVS and the closing market price of the SVS on the date of grant of the options. 25% of the total number of options granted will become fully vested on each of the first, second, third and fourth anniversary of the date of the grant.
“Harborside is committed to a full alignment of interests between management and shareholders,” added Mr. Schmults. “With the combination of the three companies, we have put in place a best-in-class management team and I am hopeful that these grants of options will further enhance our team’s commitment to achieving the Company’s full potential.”
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 twelve 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.