HBORF - HBORF STOCK NEWS

Harborside Inc. will hold its annual and special meeting of shareholders on June 23, 2022, at 11:00 a.m. ET. The meeting will be virtual, with access via a provided webcast link. After formal business, CEO Ed Schmults will present and facilitate a Q&A session. Registered shareholders and proxyholders can vote online, while non-registered shareholders can attend as guests. Established in 2006, Harborside is a leading cannabis company in California, operating 14 dispensaries and various facilities. The Company trades under symbols HBOR and HBORF.

Harborside Inc. (CSE: HBOR, OTCQX: HBORF) announced on June 6, 2022, the appointment of Kavi Bhai as Vice President of Financial Planning and Analysis and Angela Pih as Vice President of Marketing. Bhai, with over 11 years in finance, previously served as CFO at BellRock Brands and Mary's Medicinals. Pih, a seasoned marketing professional with 25 years of experience, was previously CMO at Papa & Barkley. This leadership expansion aims to enhance Harborside's strategic growth in the cannabis market, strengthening its operational and brand position in California.

Harborside Inc. (CSE: HBOR, OTCQX: HBORF) is progressing with the integration of its recently acquired companies, Sublime, Urbn Leaf, and Loudpack, aiming to achieve annualized cost savings of $10.3 million. Key initiatives include relocating manufacturing operations, consolidating management, and closing facilities, with expected savings from headcount reductions and operational efficiencies. The company anticipates its gross margins to increase by 500 basis points by year-end 2022, driven by these cost-saving measures and improved cultivation yields.

Harborside Inc. reported a 38.8% increase in net revenues for Q1 2022, reaching $17.2 million, with only one month of contribution from Urbn Leaf. The company has transformed into one of California's largest cannabis enterprises following the acquisition of Urbn Leaf on March 1, 2022, and Loudpack shortly thereafter. The press release also announced the appointment of Felicia Snyder to the board of directors. A conference call is scheduled for May 31, 2022 to discuss business integration and future plans.

Harborside Inc. has announced the acquisition of a 50% interest in its Seaside, California store, bringing its ownership to 100%. The deal, valued at US$440,000, was completed on May 18, 2022, as part of a legal settlement with a former partner. The Seaside Store, branded as Urbn Leaf, has evolved from a thrift store to a cannabis retail location. CEO Ed Schmults emphasized the importance of establishing a prominent retail presence in California's cannabis market, particularly in Northern California.

Harborside Inc. has opened two new retail stores in California's San Francisco and La Mesa, increasing its total to 13 locations. The San Francisco store, located in the historic Haight-Ashbury district, spans 1,690 square feet, while the La Mesa store covers 1,606 square feet. The company also shared estimated pro forma 2021 sales, projecting approximately $190 million from its recent acquisitions. Harborside, a longstanding player in the cannabis sector, continues to expand its footprint while adhering to sustainable retail practices.

Harborside Inc. announced the repayment of a US$6.23 million promissory note through a cash payment of US$358,541.10 and the issuance of 16,660,993 subordinate voting shares valued at US$5.87 million. The note, originally issued in July 2021 by UL Holdings, is now fully paid. CEO Ed Schmults highlighted the conversion to equity as a sign of support, coinciding with the company's expansion into one of California's largest vertically integrated cannabis enterprises. Additionally, the company granted management options to purchase up to 1,540,000 shares, aiming for alignment of interests between management and shareholders.

Harborside Inc. (OTCQX: HBORF) announced plans for a name change to StateHouse Holdings Inc. and share consolidation set for June 2022. The recent acquisitions of Urbn Leaf and Loudpack have made it one of California's largest vertically integrated cannabis companies. Shareholders will receive one post-consolidation share for every six shares held. The company’s audited annual financial statements for 2021 were also released, reflecting the period before these acquisitions. Harborside operates multiple dispensaries, catering to both recreational and medicinal cannabis markets in California.

Cresco has filed an early warning report under National Instrument 62-103, revealing that its ownership in Harborside Inc. has dropped to below 10% due to the issuance of 90,752,139 subordinate voting shares following the Acquisition of Loudpack on April 4, 2022. Before the acquisition, Cresco and its affiliates held approximately 4.8% of Harborside's shares on a non-diluted basis. Post-acquisition, their ownership is approximately 3.0% non-diluted. Cresco has no immediate plans regarding Harborside's securities, but may consider future acquisitions based on various factors.