PR Newswire
Announcement underlines Company’s commitment to expanding its retail platform
OAKLAND, Calif.
and
TORONTO
,
May 19, 2022
/PRNewswire/ – 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,” said
Ed Schmults
, Chief Executive Officer of Harborside. “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. 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.
About Harborside
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.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian and
United States
securities legislation. To the extent any forward-looking information in this news release constitutes “financial outlooks” or “future-oriented financial information” within the meaning of applicable Canadian securities laws, the reader is cautioned not to place undue reliance on such information. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, among other things, statements relating to the future success of the Seaside Store, the Company achieving a leading retail footprint, the Company becoming a leading, fully-integrated cannabis company, and the Company’s future performance.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: implications of the COVID-19 pandemic on the Company’s operations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the cannabis markets where the Company operates; changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion and acquisitions; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; employee relations; the presence of laws and regulations that may impose restrictions on cultivation, production, distribution, and sale of cannabis and cannabis-related products in the markets where the Company operates; and the risk factors set out in the Company’s management discussion and analysis for the period ended
December 31, 2021
and the Company’s listing statement dated
May 30, 2019
, which are available under the Company’s profile on
www.sedar.com
. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
The Company, through several of its subsidiaries, is indirectly involved in the manufacture, possession, use, sale, and distribution of cannabis in the recreational and medicinal cannabis marketplace in
the United States
. Local state laws where the Company operates permit such activities however, investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in
the United States
. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in
the United States
to, among other things, cultivate, distribute or possess cannabis in
the United States
. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in
the United States
may form the basis for prosecution under applicable
United States
federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in
the United States
has trended toward non-enforcement against individuals and businesses that comply with recreational and medicinal cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under
United States
federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in
the United States
is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company’s operations and financial performance.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in
the United States
. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within
the United States
or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Harborside Inc.
