Oakland, CA--Harborside Inc., a California-focused, vertically integrated cannabis enterprise, announced in a press release that it reached an agreement on May 18, 2022, to acquire a further 50% ownership interest in its Seaside, California store (the "Seaside Store"). As per the release, the acquisition will result in the Company owning all of the issued and outstanding securities of 680 Broadway Master, LLC (the "Membership Interest"), which owns the Seaside Store, bringing the Company's interest in the Seaside Store to 100%.
[Image source: Harborside Inc./Instagram]
The Seaside Store, branded under the Urbn Leaf banner, has an unexpected origin. It has transformed from a thrift store in June 2019 into its current contemporary retail cannabis location. The Seaside Store is conveniently located in the heart of Seaside (on Monterey Bay), just off Broadway Avenue. Monterey Aquarium, Fisherman's Wharf, Ribera Beach, Lovers Point Park, and other attractions are located nearby.
"A leading retail footprint is fundamental to our objective of becoming one of California's leading, fully-integrated cannabis companies," said Ed Schmults, Chief Executive Officer of Harborside, in the press release. "We're excited to acquire full ownership of the Seaside Store, a great location on Monterey Bay that caters to area residents and tourists. We look forward to further expanding our retail footprint in Northern California."
The acquisition resulted from a legal settlement with the Company's former partner in the Seaside Store. As a result, the total cost of the acquisition was only US$440,000, with US$100,000 to be paid upfront and the balance payable over seven years, with US$50,000 being paid on the first to sixth anniversaries of the first Installment, and US$40,000 being paid on the seventh anniversary of the first Installment. To secure the timely payment of the total consideration, a security interest in the Membership Interest will be granted to the former partner, including all economic rights and governance rights.
More details in this release.