Harborside Inc. has completed the previously announced acquisition of California cannabis retailer Urbn Leaf. The company has appointed Ed Schmults (previously of FAO Schwarz, Patagonia, and Goldman, Sachs & Company), as CEO.
First announced in November of 2021, the now complete deal allowed Harborside to acquire 100% of Urban Leaf’s equity interests through the issuance of 60,000,000 subordinate voting shares (SVS) and the restructuring and assumption of debt. The previous announcement also included the acquisition of Loudpack, a deal expected to close on or around March 15th, 2022. Once the Loudpack acquisition is complete, Harborside will be renamed StateHouse Holdings Inc.
Will Senn has been appointed as Harborside’s Chief Corporate Development Officer. Senn founded Urbn Leaf in 2017; created the United Medical Marijuana Coalition, Patient Care Association, Global Alliance for Cannabis Commerce; and has been named one of the top 100 most influential cannabis industry people by High Times.
Founded in 2006 as a nonprofit by “the father of legal cannabis” Steve DeAngelo, Harborside began adult-use cannabis sales in 2018 and went public a year later. It was the first medical dispensary to introduce lab testing for products back in 2009 and has grown considerably in the last 16 years.
Along with the closing of the acquisition, Harborside has entered lock-up agreements with certain Urbn Leaf shareholders. Pursuant to the lock-up agreements, Urbn Leaf locked-up shareholders agree to not sell, assign, or transfer their subordinate voting shares. The restrictions will release one-third of the SVS six, 12, and 18 months from today, respectively.
“This sets a strong course forward as we navigate a competitive and evolving cannabis market in California,” said Schmults. “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.”