HBORF - HBORF STOCK NEWS

Harborside Inc. has completed significant upgrades to its Salinas, California greenhouse, enhancing its cultivation capabilities. The upgrades, which include blackout curtains, LED lights, and an advanced environmental control system, are expected to boost annual cultivation capacity by over 50%. These improvements will facilitate year-round production of high-quality cannabis products. The company plans to apply for a permit to further expand its operations, leveraging recent zoning changes in Monterey County. This strategic move aims to meet growing demand for its products in California's cannabis market.

On June 14, 2021, Harborside Inc. announced the grant of 684,985 stock options to employees at an exercise price of $2.21 per subordinate voting share. These options are valid for five years and subject to vesting conditions in accordance with the company's equity incentive plan established on June 30, 2020. This move aims to enhance employee engagement and align their interests with shareholders. Harborside, a leading cannabis retailer in California, holds multiple licenses for retail and cultivation.

Harborside Inc. has settled a litigation case with a former employee for approximately US$1.5 million, aimed at eliminating future legal costs. This litigation began in June 2018, with more than half of the settlement amount previously reserved in Q4 2019. The settlement resolves all related issues, enhancing the Company's focus on operations without the distraction of ongoing litigation. Harborside operates in the California cannabis market with multiple dispensaries and holds several licenses.

Harborside Inc. (CSE: HBOR, OTCQX: HBORF), a key player in California's cannabis industry, announced its participation in several upcoming conferences in June 2021. Notably, Chairman Matt Hawkins will present at the Benzinga Cannabis Capital Conference on June 3 at 9:30 a.m. ET. Additionally, management will engage in investor meetings at the Piper Sandler 41st Annual Consumer Marketplace Conference on June 3-4. Hawkins is also set to join a panel at Grizzle Cannabis Con on June 7 at 1:00 p.m. ET. More information is available on their official website.

Harborside Inc. has successfully completed the acquisition of its 47-acre Production Campus in Salinas, California, for approximately $10.84 million using funds from its credit facility. The campus includes 200,000 sq. ft. of licensed cultivation space. This acquisition follows a prior upgrade of a greenhouse at the site, aimed to enhance production capabilities. The company anticipates this expansion will improve cash flow and reduce production costs, supporting future growth in response to increasing consumer demand.

Harborside Inc. has announced a definitive agreement to acquire Sublimation Inc., a leading cannabis manufacturer based in California, for approximately US$43.8 million. The acquisition aims to enhance Harborside's brand portfolio and operational synergies, particularly leveraging Sublime's award-winning Fuzzies pre-roll products. With a revenue CAGR of about 70% since 2019 and a 7.9% market share in the California pre-roll market, Sublime is strategically positioned for growth. The transaction is expected to close in July 2021, subject to customary conditions.

Harborside reported Q1 2021 gross revenues of $13.0 million, a 9% decline year-over-year from $14.6 million in Q1 2020. Adjusted EBITDA rose to $1.0 million, up from $0.3 million in the prior year. The company reaffirms its full-year guidance of gross revenues between $68-72 million and an adjusted EBITDA margin of 15-17%. While retail gross margins improved to 55%, wholesale revenues decreased by 31%. The company also secured a $12 million credit facility and closed a private placement of approximately C$35.1 million.

Harborside Inc. has received regulatory approval from the California Bureau of Cannabis Control to begin adult-use retail sales at its San Leandro Wellness Solutions dispensary. This approval comes alongside a six-month lease extension for the current location as the company prepares to move to a new dispensary site in San Leandro, which is expected to enhance customer visibility and reduce overhead costs. The anticipated relocation is projected to save over $2 million in operating expenses over the 10-year lease term, which could significantly boost profitability and revenue generation.

Harborside Inc. (CSE: HBOR, OTCQX: HBORF) has appointed Travis Higginbotham Jr. as Vice President of Production, effective May 11, 2021. Higginbotham, with over eight years of experience in commercial horticulture, will oversee operations at the company's Salinas, California facility. His prior role as co-owner at The Hemp Mine saw substantial revenue growth during the pandemic. Higginbotham aims to enhance production and reduce operational costs at Harborside, a key player in California's cannabis market, known for its iconic brand and multiple licenses for cannabis activities.