California-Based LoudPack Secures $5M Via Deal With Harborside

Harborside Inc. HBOR HBORF has backed up a California-based cannabis company LPF JV, LLC with $5 million.

The Oakland, California-based cannabis company completed a strategic investment in Loudpack via a 15% secured convertible note that's due December 2022.

In return, Loudpack agreed to boost production at Harborside's cultivation facility in Salinas.

Loudpack also opted to advance the production of Harborside branded products by providing contract manufacturing services.

In addition, Harborside — under the helm of CEO Peter Bilodeau — will work on securing additional shelf space for Loudpack branded products.

The move came on the heels of raising some CA$35.1 million (US$27.8 million) through a brokered private placement deal, which will be utilized on building scale in the California market.

"Through this capital investment, we have strengthened our partnership with Loudpack and will look to leverage their expertise as we explore opportunities to expand our cultivation, production, and distribution capabilities to improve the availability of our high-quality cannabis products for consumers across California," Matthew Hawkins, the company's chairman said Monday.

He revealed that they are enhancing their profitability by implementing innovative production techniques and developing their supply chain and in-house brands.

In November, the company disclosed it's poised to launch sales of clones grown at its facility Salinas, under its brand, Desert Hot Springs.

The company also announced it's enchasing one of the greenhouses at its 47-acre integrated production campus.