Harborside Inc. (CSE:HBOR) (OTCQX:HBORF) completed the previously announced acquisition of California cannabis retailer UL Holdings Inc..
Under the deal, Harborside acquired 100% of the equity interests of Urbn Leaf through the issuance of 60 million subordinate voting shares, and the restructuring and assumption of debt.
In addition to acquiring Urbn Leaf, Harborside is also working to complete the previously announced acquisition of LPF JV Corporation. Both the UL acquisition and the Loudpack acquisition were overwhelmingly approved by Harborside shareholders at a special meeting of shareholders held on February 22, 2022. The Loudpack acquisition is expected to close on or around March 15, 2022. Harborside will officially be renamed StateHouse Holdings Inc. shortly after the closing of the Loudpack Acquisition.
"Today's milestone gets us one step closer to the creation of StateHouse, a new leader in California's cannabis sector," stated Matthew Hawkins, chairman of the board of directors and previously interim CEO of Harborside. "We are grateful to the entire Urbn Leaf team that worked with us to finalize this transaction, including its seasoned CEO, Ed Schmults, who has been appointed as CEO and a director of Harborside."
Schmults expects much will be accomplished after addition of Loudpack. "This sets a strong course forward as we navigate a competitive and evolving cannabis market in California," stated Schmults. "The combined assets of Urbn Leaf and Harborside provide an excellent opportunity for shareholders, and set the stage for the addition of Loudpack. We believe that StateHouse will be one of the largest and most sophisticated cannabis platforms in the state of California with superior retail, brands, processing, manufacturing, distribution and cultivation. This is a resilient platform for growth as a consolidator of California's cannabis industry and supports enhanced career and business opportunities for everyone in the StateHouse ecosystem."
Harborside also announced that Will Senn has been appointed chief corporate development officer of the company. Senn, who was named one of the top 100 most influential people in the cannabis industry by High Times, founded Urbn Leaf in 2017. He also created a number of successful industry trade associations, including the United Medical Marijuana Coalition, Patient Care Association and the Global Alliance for Cannabis Commerce.
