Harborside Inc. (OTCQX:HBORF) (CSE:HBOR) reached an agreement on May 18 to acquire a further 50% ownership interest in its Seaside, California store. The acquisition will result in the company owning all of the issued and outstanding securities of 680 Broadway Master, LLC, which owns the Seaside Store. This brings the company's interest in the Seaside Store to 100%.
The Seaside Store, which is branded under the Urbn Leaf banner, has an unexpected origin, having transformed from a thrift store back in June 2019 into its current contemporary retail cannabis location. The Seaside Store is conveniently located in the heart of Seaside, just off Broadway Avenue. Such attractions as the Monterey Aquarium, Fisherman's Wharf, Ribera Beach and Lovers Point Park are located nearby.
"A leading retail footprint is fundamental to our objective of becoming one of California's leading, fully-integrated cannabis companies," stated Ed Schmults, CEO of Harborside. "We're excited to acquire full ownership of the Seaside Store, a great location on Monterey Bay that caters to both area residents and tourists. We look forward to further expanding our retail footprint in Northern California."
The acquisition was the result of a legal settlement with the company's former partner in the Seaside Store. As such, the total cost of the acquisition was only $440,000 with $100,000 to be paid upfront and the balance payable over seven years, with $50,000 to be paid on the first to sixth anniversaries of the first installment, and $40,000 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.
Photo: Courtesy of Jeff W on Unsplash
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