Business Combination with Urbn Leaf and Loudpack - Urbn Leaf CEO Ed Schmults to be named CEO of StateHouse -
- Vertically integrated with a fully installed and operational platform to consolidate the California cannabis sector -
- US$77.3 million in rollup debt financing expected to provide non-dilutive capital, leveraging StateHouse's significant real estate portfolio -
OAKLAND, Calif., Nov. 29, 2021 /PRNewswire/ - Harborside Inc. ("Harborside" or the "Company") (CSE: HBOR), (OTCQX: HBORF) a California-focused, vertically integrated cannabis enterprise, is pleased to announce that it has entered into definitive agreements (the "Definitive Agreements") to acquire UL Holdings Inc. ("Urbn Leaf"), a top California cannabis retailer with a dominant position in Southern California (the "Urbn Leaf Transaction"), and LPF JV Corporation ("Loudpack"), a leading manufacturer, cultivator and distributor of award-winning cannabis brands in California (the "Loudpack Transaction" and, together with the Urbn Leaf Transaction, collectively, the "Transactions"). Following completion of the Transactions, Harborside is expected to be renamed StateHouse Holdings ("StateHouse"), subject to shareholder and regulatory approval.
Management believes that StateHouse, which is expected to trade under a new symbol (CSE: STHZ), will be the largest and most developed cannabis platform in the state of California with superior retail, brands, processing, manufacturing, distribution and cultivation. Management believes that StateHouse will have the highest estimated annual revenue and brand market share among its current publicly-listed California peers1, providing the Company with a strong platform for growth as a consolidator of California's cannabis industry. Through the first nine months of 2021, Harborside, on a pro-forma basis including revenue of Sublimation Inc. ("Sublime") for the entire period, had gross revenue of US$57.8 million2, while Urbn Leaf and Loudpack had revenue of US$45.9 million and US$61.4 million, respectively. Therefore, on a pro forma basis, management estimates that StateHouse would have generated gross revenue of approximately US$165 million for the same period.2