Harborside Announces $20.0 Million Financing, Releases 2021 Guidance

Harborside Inc (CSE: HBOR) this evening announced that it will be conducting a brokered private placement. The financing will see the company look to raise $20 million through the offering. Concurrently, the company also announced preliminary results for the full year ended 2020, as well as guidance for 2021.

The financing will see the company sell units at a price of $2.55 each, with each unit containing one subordinate voting share and one subordinate voting share purchase warrant. Each warrant is valid for a period of 36 months from the date of issuance and contains an exercise price of $3.69 per subordinate voting share.

Proceeds from the financing are to be used for working capital and general corporate purposes. Furthermore, a portion of the financing has been already committed, with Entourage Capital committing to $9.0 million within the financing.

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In terms of guidance, the company has indicated that it expects full year revenues for 2020 to come in between $61 and $63 million, along with positive EBITDA. Looking to 2021, Harborside has guided to revenues of $68 to $72 million, with the growth expected to come from improved retail pricing as well as improved flower yields from its wholesale operation. The firm also anticipates adjusted EBITDA to be between 15% and 17% for 2021, an improvement from the 8% to 10% anticipated for 2020.

“We are continuing to expand our footprint in the robust California cannabis market, delivering our best-in-class service and the high-quality product selection that Harborside is known for. This additional capital will solidify our balance sheet and provide a platform for us to continue to consolidate in the California market through accretive M&A transactions.”

Matthew Hawkins, Chairman of Harborside

Harborside Inc last traded at $2.84 on the CSE.

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