Harborside Converts $5.87M Promissory Note To Equity

Harborside Inc. HBORF HBOR announced that a promissory note in the amount of $6.23 million, which includes principal, interest and fees, has been repaid by: a cash payment in the amount of $358,541.10 and the issuance of $5.87 million worth of subordinate voting shares of Harborside at a price of $0.35 per SVS, that being 16.66 million SVS. The note, which was issued in July 2021 by UL Holdings Inc. ("Urbn Leaf") in relation to a bridge financing, is now considered to be paid in full and is no longer outstanding.

"We are delighted that holder of the note elected to convert the note into Harborside equity," stated Ed Schmults, CEO of Harborside. "This show of support for the company underlines the potential we are unlocking through the recent business combinations with both Urbn Leaf and Loudpack. The company, to be renamed StateHouse Holdings Inc., is now one of the largest vertically integrated cannabis enterprises in California and represents an ideal platform to consolidate the industry."

Harborside also announced the grant of options to certain members of management to purchase up to an aggregate 1.54 million SVS. The options are exercisable at the greater of CA$0.75 ($0.58) per SVS and the closing market price of the SVS on the date of grant of the options. 25% of the total number of options granted will become fully vested on each of the first, second, third and fourth anniversary of the date of the grant.

Photo: Courtesy of Richard T on Unsplash

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