Harborside Inc. (OTCQX:HBORF) has completed its previously announced acquisition of Loudpack, LPF JV Corporation, California’s leading manufacturer, cultivator and distributor of award-winning cannabis brands.
This acquisition follows Harborside's acquisition of Urbn Leaf on March 1 and Sublimation Inc. in July 2021.
"This is an important milestone," said Ed Schmults, CEO of Harborside. "By combining the businesses of Harborside, Sublime, Urbn Leaf and Loudpack, we established a true leader in California's cannabis industry with a strong platform for growth. The Loudpack team, led by CEO Marc Ravner, has built a tremendous business that is highly complementary to the rest of our operations. We welcome them aboard and look forward to building a stronger company together as StateHouse."
Marc Ravner, appointed president of integration of the Company said StateHouse has a promising future. "We are ideally positioned with an integrated platform that features strong brands, a broad retail footprint, scaled manufacturing, state-wide distribution and proprietary cultivation. On behalf of everyone at Loudpack, I look forward to building shareholder value as part of the StateHouse team."
Statehouse Highlights
- One of the largest vertically integrated California public cannabis enterprises with estimated pro-forma gross revenue of approximately $165 million for the first nine months of 2021;
- Statewide presence with 15 retail locations and further strategic expansions in the pipeline;
- #3 ranked brand house in California with nine renowned brands, including top-five ranked brands in the pre-roll (Fuzzies and Kingpen), edible (Smokiez) and value flower (Dime Bag) segments;
- Manufacturing facilities with an annual capacity of more than US$400 million in branded products revenue at full utilization, with capabilities to produce across all product formats offered by the Company;
- Fully scaled greenhouses featuring capacity of 230,000 square feet of cultivation space, with additional near-term expansion capacity of more than 100,000 square feet of canopy to support the Company's vertically integrated platform.
Loudpack Acquisition And Name Change To StateHouse
Pursuant to the terms of the agreement Harborside acquired 100% of the equity interests of Loudpack through the issuance of 90,752,140 subordinate voting shares ("SVS" or "Share"), 2,000,000 warrants, the restructuring and assumption of US$50 million of debt and cash consideration of approximately US$5 million.
With the acquisitions of Loudpack and Urbn Leaf now completed, Harborside plans to file articles of amendment to officially be renamed StateHouse and to effect the consolidation of all of its issued and outstanding SVS.
