Harborside Second Quarter Revenue Grows 23.4% To $15.4M

Vertically integrated cannabis company Harborside Inc. HBOR HBORF reported its financial results Monday for the second quarter ending June 30, 2021 revealing total net revenue of $15.4 million which compares to $12.4 million in the same period of 2020.

Second Quarter Financial Summary

• The Company's retail operations generated gross profits of approximately $6.2 million in Q2 2021, compared to $5.5 million in Q1 2021.
• Total operating expenses for Q2 2021 were $9.0 million, compared to $7.1 million in Q2 2020.
• Operating loss for Q2 2021 was around $300,000, compared to an operating income of $500,000 for Q2 2020.
• Net income attributable to Harborside was around $1.8 million in Q2 2021, compared to a net loss of approximately $1.7 million in Q2 2020.
• Adjusted EBITDA for Q2 2021 was $1.1 million or 7.3% of net revenues, compared to approximately $2.0 million or 13.2% of net revenues for Q2 2020.
• As of June 30, 2021, Harborside had total current assets of approximately $38.4 million, including approximately $26.9 million of available cash, compared $21.9 million in assets, including $13.6 million in cash it held on June 30, 2020.
• During the quarter, the company closed a brokered private placement for aggregate gross proceeds of approximately CA$35.1 million ($27.89 million).

"I'm thrilled with the strong sequential growth we drove in our second quarter while continuing to make solid improvements to our gross margins and profitability," Matt Hawkins, chairman and interim CEO of Harborside stated. "We continue to build a robust business, supported by our high-quality cultivation, leading consumer brands, and best-in-class retail experience. Our continued focus on improvement has allowed us to become a leader in the California cannabis market and we expect our business to continue to advance as we begin to integrate the synergies afforded by the Sublime Acquisition that closed in July".

Q2 2021 Operational Highlights

• Completed upgrades to the Salinas production campus it had acquired;
• Entered into a definitive agreement to acquire Sublimation Inc. for $43.8 million;
• Commenced adult-use sales at the San Leandro dispensary;
• Appointed Travis Higginbotham Jr. as vice president of production;

Subsequent Events

• Appointed Matt Hawkins as interim CEO and Ahmer Iqbal as COO of Harborside
• Completed the Sublime acquisition, which includes "Fuzzies", California's award-winning infused pre-roll brand.

More recent news from Harborside:

NY College To Offer Cannabis Minor Degree, Supported By Berner's Cookies, Chris Webber's Fund, Columbia Care, Others

Cannabis Movers & Shakers: Harborside Shakes Up Leadership Team, Pure Harvest Strengthens Advisory Board

Cannabis Co. Harborside Completes Purchase Of Pre-Roll Brand Sublime For $43.8M

Harborside Raises CA$35.1M Via Brokered Private Placement

Harborside Reports Full-Year 2020, Q4 Results: What Cannabis Stock Investors Need To Know

Price Action

Harborside’s shares closed Monday market session 1.65% higher at 87 cents per share.

Photo: Courtesy of kevin hupfer on Unsplash