Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) now fully owns the Seaside, California store also known as Urbn Leaf. Harborside had initially purchased a 50% ownership in the dispensary, but with the new transaction, it will own all of the issued and outstanding securities of 680 Broadway Master, LLC which owns the Seaside Store, bringing the company’s interest in the Seaside Store to 100%.
“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 deal was the result of a legal settlement with the company’s former partner in the Seaside Store. As a result, the total cost of the acquisition was only $440,000, with $100,000 to be paid upfront and the balance payable over seven years, with $50,000 being paid on the first to sixth anniversaries of the First Installment, and $40,000 being paid on the seventh anniversary of the First Installment.
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.
Last week, Harborside announced it opened two new retail stores in California, bringing its total retail store count to 13. It has opened a new Harborside-branded store in San Francisco, and a new Urbn Leaf-branded store in La Mesa, located in San Diego County.
“Expanding our retail footprint in both northern and southern California with these attractive new stores in excellent locations is an important step forward,” said Schmults. “It is particularly notable that these stores have significantly less square footage compared to many cannabis dispensaries in the state. This smaller footprint reflects a much more sustainable approach to cannabis retail in an evolving market. We believe that both stores are well positioned for long-term success.”
Excluding bulk sales, which Harborside has discontinued since completing the Acquisitions, management estimates that the company’s pro forma 2021 sales would have totaled approximately $190 million.