One of the oldest and most respected cannabis retailers in California
Operating two of the major dispensaries in the San Francisco Bay Area, two dispensaries in Oregon and a cultivation facility in Salinas, California
Why Harborside Inc?
(CSE: HBOR), (OTCQX: HBORF)
California is one of the largest cannabis markets in the world and Harborside has more than a decade of market success, making it one of the oldest and most respected retailers in California, commanding a 3% share of the entire market.
- Renaming company as StateHouse Holdings Inc.
- StateHouse will be one of the largest publicly traded, vertically integrated cannabis operators in the state of California, with a fully installed and operational platform to consolidate the state's cannabis sector.
- Awarded one of the first six medical cannabis licenses in the USA
- Operations have generated over $400M in cumulative sales since inception
- Retail operations command 3% of California’s entire retail market
- Planned 11 Acre Solar Array Expected to Offset 100% of Harborside's Greenhouse Cultivation Energy Consumption
Second Quarter 2021
5 Dispensaries
Increased Interest in Haight-Ashbury Dispensary
- Further 29.9% interest in FGW Haight, Inc., a Social Equity Dispensary in Historic Haight-Ashbury District, capitalizing on future growth potential
- The SF Bay Area cannabis market is expected to grow from ~$667M in 2018 to ~$1.5B in 2021 Market
- Potential & growth for California eclipses the combined value of FL, NY, MA & NV
Over 1,300 customers per day in Q2
Oakland dispensary is one of the largest retail cannabis locations in the world
100%Desert Hot Springs retail dispensary location strategically located in Coachella Valley
OPERATIONS:
CALIFORNIA FOCUSED
Harborside dispensaries have generated over $400M in sales to date, and are strategically focused on growing market share in California.
● The SF Bay Area cannabis market is expected to grow from ~$667M in 2018 to ~$1.5B in 20221
● Market potential & growth for California eclipses the combined value of FL, NY, MA & NV
● Recently opened two new Harborside locations to further expand California footprint
RETAIL OPERATIONS
Harborside dispensaries are preeminent NorCal cannabis retail operations with a significant track record and expertise gained through 13 years of operations. Harborside operates five dispensaries that are expected to produce approximately $62M in sales in 2020. Significant market share and captive shelf space drive industry-leading sales
● Q2’20 Highlights Over 1,300 Average Customers per Day, 4.2% YoY Revenue Growth, $16.1M Sales
● Retail operations command 3% of California’s entire retail market
LOCATIONS:
● Harborside Desert Hot Springs,
● Haight-Ashbury district of San Francisco
Harborside’s retail dispensaries serve both adult-use and medical cannabis customers.
The Harborside dispensary in Desert Hot Springs, California is operated under an MSA with Accucanna, LLC and includes the only drive-thru cannabis dispensary in southern California.
Together, Harborside’s retail dispensaries have over 15 years of operating history, with more than $325 million of historical sales (including gross revenue of more than $49 million in Fiscal 2019), and in excess of 270,000 patients and customers served.
Harborside’s Oakland dispensary received one of the first six commercial cannabis licenses issued in the US and is one of the largest retail cannabis locations in the world.
CULTIVATION & PRODUCTION
● Sun grown in world renowned Salinas agricultural area
● strategically focused on high quality greenhouse cultivation and processing
● Dutch Venlo technologies (the “Venlo Greenhouse”). : State of the Art Greenhouse
The Salinas Farm
● Harborside operates a cultivation facility located in Salinas, California.
The Salinas Farm is approximately forty-seven (47) acres in size and contains five active greenhouses covering approximately 200,000 total square feet (“sq. ft.”),
● including one greenhouse which features Dutch Venlo technologies (the “Venlo Greenhouse”)
● there are separate buildings on site for drying and processing
The Salinas Farm enables Harborside to produce a wide array of cannabis products offered at varying price points, meeting the ever diverse and changing buying habits of retail customers along with other dispensaries, manufacturers, and distributors.
The Venlo Greenhouse
Provides approximately one acre of growing space in a facility that is equipped with
● solid glass paneling,
● radiant heated floors,
● computerized environmental and fertigation systems
● Customizable automated LED lighting system.
All premium flower grown in this facility is cultivated using sustainable practices and adheres to California’s rigorous horticulture and harvesting standards. As the regulated California market continues to develop, management sees strong potential growth in well-known retail platforms, as well as branded products that are trusted by consumers.
Wholesale
● Approximately 47% growth in wholesale revenue
Management expects continued B2B demand for:
● high quality bulk wholesale flower
● consumer packaged branded products and
● product lines focused on specific consumer demographics
BRANDS
“Harborside”,
“Harborside Farms Reserve"
"Sublime"
"Fuzzies"
Brands are well positioned for growth in the area of branded products, including those products sold at wholesale to other retailers and distributors throughout California.
STORE OPENINGS & ACQUISITION
PIPELINE
Harborside expects to leverage its pipeline of acquisition opportunities to capture additional market share
PROSPECTIVE OPPORTUNITIES
In active discussions with additional M&A parties across NorCal and SoCal, targeting retail operations exceeding $10M in sales and $1M in EBITDA, operational manufacturing assets, and branded product companies
INCREASE MARGINS
By capturing more of the value chain margin
- increased by vertically integrating retailers operating as standalone entities