Harborside (HBOR.C) finished their acquisition of UL Holdings (Urbn Leaf), which is a cannabis retailer with a strong presence in Southern California.
The deal includes 100% equity interest in Urbn Leaf through 60 million subordinate shares and assumption and restructuring of their existing debt. In addition, it sets the table for their scheduled acquisition of Loudpack, which is involved in California craft cannabis. When that’s complete, they’re going to change their name to StateHouse Holdings.
“This sets a strong course forward as we navigate a competitive and evolving cannabis market in California. 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,” said incoming CEO Ed Schmults.
Harborside is a California-based vertically integrated cannabis company with licenses in retail, major brands, distribution, cultivation, nursery and manufacturing. They presently operate eleven dispensaries throughout North and Southern California and one in Oregon, as well as a manufacturing facility in Oakland, and distribution facilities in San Jose and Los Angeles.
Alongside the closure of the UL acquisition, Harborside got certain shareholders of Urbn Leaf not to sell, assign or transfer their shares. The restrictions lapse in three instalments, with each one-third of the shares released from the restrictions in six months, a year, and a year and a half respectively.
“Today’s milestone gets us one step closer to the creation of StateHouse, a new leader in California’s cannabis sector. 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,” said Matthew Hawkins, chairman.