Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR),(OTCQX: HBORF) a California-focused, vertically integrated cannabis enterprise, today provided an update on its previously announced plan to purchase the Company’s 47-acre production campus, which includes 200,000 sq. ft. of licensed cultivation space, including 155,000 sq. ft. of flower canopy space and 45,000 sq. ft. of nursery space in Salinas, California (the “Production Campus”). On June 1st, 2021, the Company completed the purchase of the Production Campus using approximately $10.84 million in funds drawn from its existing credit facility.
In November 2020, the Company announced it had engaged in a substantial upgrade of one of its approximately 45,000 square foot greenhouses at the Production Campus. The upgrades will be completed in Q2 2021, and include, among other things, the installation of blackout curtains, supplemental LED grow lights and new flooring in the greenhouse.
“We are thrilled to have completed the acquisition of our Salinas cultivation and production facility,” said Peter Bilodeau, Interim CEO of Harborside. “With a soon to be expanded ecosystem of Harborside brands, including our recently announced acquisition of Sublime and their award-winning Fuzzies branded pre-rolls, this transaction will enable us to further expand our operations in Salinas to keep up with increasing consumer demand. In addition, with our newly lowered cost of capital, we will improve cash flow and decrease our overall costs of production from the facility, driving long term margin expansion.”
“We are excited to have been able to put together a such favorable credit deal”, added Tom DiGiovanni, CFO of Harborside. “The close working relationship we’ve developed with our bank over the past five quarters ultimately provided the Company with an industry leading cost of funds and the ability to better manage our working capital. We are looking forward to expanding our banking relationship as we continue to grow the business.”
