Harborside, a Toronto, Canada-based public company focused on California’s legal cannabis market, has completed its acquisition of San Diego-based dispensary operator Urbn Leaf.
Urbn Leaf’s CEO Ed Schmults was named CEO of Harborside as part of the deal.
Harborside (CNQ: HBOR, OTCQX: HBORF) is a vertically integrated operator with approximately 200,000 sq. ft. of cultivation, 39,000 sq. ft. of processing space, three product brands (Sublime, Key and Harborside) prior to the Urbn Leaf acquistion, and five retail dispensaries, including four in California and one in Oregon.
Urbn Leaf operates a chain of consumer-friendly dispensaries and delivery services. It will become part of Harborside’s long-term strategy to build a vertically integrated California cannabis operation dubbed “StateHouse.”
“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,” Harborside chairman and interim CEO Matthew Hawkins said.
Schmults previously held CEO roles at FAO Schwarz and Wild Things Gear, and was COO at Patagonia and Red Envelope, following an investment banking career with Goldman Sachs.
“This [merger] 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,” Schmults said, referring to another acquisition target of Harborside.
Harborside is working to finalize its previously announced acquisition of Loudpack, a privately held, vertically integrated cannabis company in California. The acquisition of Loudpack will complete the second phase of Harborside’s expansion plans which culminate in the company being officially renamed StateHouse Holdings Inc., or StateHouse.
Loudpack’s family of companies and joint ventures include: a cannabis brand marketing and sales company; one of the state’s largest cannabis manufacturing facilities; Loudpack Distribution; and Humboldt Partner Group, a cannabis sourcing brokerage that operates directly with more than 400 of California’s top craft growers.
Harborside, with cannabis licenses covering retail, major brands, distribution, cultivation, nursery and manufacturing, is one of the oldest continuously operating legal cannabis companies in California. Founded in 2006, Harborside was awarded one of the first six medical cannabis licenses granted in the United States.