Harborside Inc. Reports Fourth Quarter 2021 Financial Results
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.
- Completion of acquisitions of Loudpack and Urbn Leaf enhances market position.
- Transformation into one of California's largest vertically integrated cannabis companies.
- Pending name change and share consolidation may confuse investors.
- Risks associated with remaining a Schedule I drug under US law.
– Name change and share consolidation to be rescheduled for June 2022 –
OAKLAND, Calif. and TORONTO, April 27, 2022 /PRNewswire/ - Harborside Inc. ("Harborside" or the "Company") (CNSX: HBOR), (OTCQX: HBORF), a California-focused, vertically integrated cannabis enterprise, today filed its audited annual financial statements and management's discussion & analysis for the twelve months ended December 31, 2021 (collectively, the "Annual Financial Results") under the Company's profile on SEDAR at www.sedar.com.
The Annual Financial Results encompass a period prior to the Company's acquisitions of UL Holdings Inc. ("Urbn Leaf") and LPF JV Corporation ("Loudpack"), which were completed in March and April 2022, respectively. The Loudpack and Urbn Leaf acquisitions have transformed the Company into one of the largest vertically integrated cannabis enterprises in California.
With the acquisitions of Loudpack and Urbn Leaf completed, the Company now plans to effect its previously announced name change to StateHouse Holdings Inc. (the "Name Change") and concurrent share consolidation (the "Consolidation") in June 2022. Pursuant to the Consolidation, shareholders are expected to receive one post-Consolidation subordinate voting share (a "Share") for every six pre-Consolidation Shares (the "Consolidation Ratio"), subject to the Company continuing to meet minimum listing requirements of the Canadian Securities Exchange (the "CSE"). Accordingly, following the Name Change and Consolidation, shareholders currently holding six Shares of Harborside will instead own one Share of StateHouse Holdings Inc. The trading price of the Shares is expected to reflect the Consolidation Ratio immediately upon the resumption of trading of the Shares following the Name Change and Consolidation. The Name Change and Consolidation were approved by the shareholders of the Company on February 22, 2022. The Company's new corporate website, statehouseholdings.com, will be updated with fulsome corporate information following completion of the Name Change and Consolidation. More information on the Consolidation is available on the Company's website at www.investharborside.com.
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". Following completion of the Name Change and Consolidation, the post-Consolidation Shares are expected to trade on the CSE under the new ticker symbol "STHZ". 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.
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 Company's future performance; the Company's plans and ability to complete the Name Change and Consolidation within anticipated timeframes, if at all; the trading of the Shares on the CSE on a post-Consolidation basis following the Name Change and Consolidation within anticipated timeframes, if at all; and the impact of the Consolidation on the trading price of the Shares.
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.
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