Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR), (OTCQX: HBORF) a California-focused, vertically integrated cannabis enterprise, today announced it has purchased 100% of the issued and outstanding equity interest of Accucanna LLC, the license holder of the Company’s Desert Hot Springs retail dispensary location (“DHS”), together with the real property (the “Property”) relating to the DHS (collectively, the “Acquisition”) for a total consideration of US$4,918,263 (the “Purchase Price”). Prior to closing of the Acquisition, Harborside had been operating the dispensary since December 2019 under a management services agreement.
“We are thrilled to add our Desert Hot Springs retail dispensary into our California retail store portfolio,” said Matt Hawkins, Interim CEO of Harborside. “As one of only two drive-through retail locations permitted in the state, and with our strategic location in the Coachella valley near the freeway, we are well-positioned to continue to service the local community and support the robust year-round tourism industry.”
In December 2019, Harborside announced that it opened DHS, the Company’s first retail location outside of the Bay Area. Located at 66205 Paul Road, Desert Hot Springs, CA, the 4,800 square foot facility is strategically located on Interstate 10 between Los Angeles and Coachella and serves both medical and adult-use customers with a wide selection of cannabis products, including Harborside’s own KEY branded line of cannabis flower. In addition to the brick and mortar store, DHS functions as one of only two state licensed drive-through dispensaries in all of California, providing consumers with a fast, convenient way to purchase cannabis products.
Upon the closing of the Acquisition, Harborside paid the aggregate Purchase Price comprised of: (a) approximately US$1.5 million in 15,793.40 multiple voting shares based on the 30 day volume-weighted average price of the subordinate voting shares of the Company on the Canadian Securities Exchange (“CSE”) at the time of closing of the Acquisition, and US$784,646 in cash consideration for the transfer of the equity interest of Accucanna LLC to the Company; and (b) US$2.6 million in cash for the Property. Harborside expects to finance all or a portion of the Purchase Price owed for the Property after closing of the Acquisition.