Harborside Inc. Acquires Full Ownership of Seaside, California Store
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.
