Harborside Announces US$12.0 Million Revolving Bank Loan

Harborside Inc (CSE: HBOR) has managed to secure a loan financing from a commercial federally regulated bank in the United States, believed to be the first transaction of its kind in the US cannabis space. Announced this morning, the financing will see the company secure US$12.0 million under a secured revolving credit facility.

Funds from the loan will be used to support the acquisition of a 47-acre production campus, which includes 200,000 square feet of licensed grow space. That transaction is slated to close later this year, with much of the loan to be used for the transaction.

The terms of the loan include a variable interest rate based on the prime plus a premium, with a floor set at 5.75%, while the debt has a maturity of three years. The loan is to be secured by a first-priority security interest on all of the firms assets, with an upfront cash payment being made that will act as an original issue discount.

“To the best of our knowledge, Harborside is the first cannabis business in the United States to secure a commercial loan of this kind with a traditional lender. This deal is the culmination of months of effort and reflects the close working relationship and trust that we have developed with our bank. By significantly lowering our cost of capital, we will be able to better serve our customers, provide high-quality products and invest more heavily throughout California.”

Tom DiGiovanni, CFO of Harborside

4,100 warrants to purchase multiple voting shares of the company at a price of $369 per MVS have also been issued, which are valid for a period of two years from the date of issuance.

Harborside Inc last traded at $2.45 on the CSE.


FULL DISCLOSURE: Harborside Inc is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Harborside Inc on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Carrying The Torch In The Fight Against 280e – Spotlight Series feat Harborside

Today for the Daily Dive, we reach back into our video library for a video...

Tuesday, November 17, 2020, 01:00:00 PM

Harborside To Acquire Urbn Leaf, Loudpack, Rebrand As StateHouse Holdings

Harborside Inc (CSE: HBOR) this morning had a number of notable developments, starting with the...

Tuesday, November 30, 2021, 07:34:53 AM

Harborside Expands Capacity At Salinas Facility By 50%

Harborside Inc (CSE: HBOR) this morning announced that it has completed substantial upgrades at its...

Wednesday, June 30, 2021, 08:36:46 AM

Harborside Reports Q2 Revenues Of $15.4 Million, Net Income

Harborside Inc (CSE: HBOR) last night reported its second quarter financial results. The company saw...

Tuesday, August 31, 2021, 08:55:48 AM

Harborside Reports Preliminary Q3 Revenues Of US$18.5 Million

Harborside Inc (CSE: HBOR) yesterday announced positive preliminary results for its third quarter of fiscal...

Tuesday, October 13, 2020, 12:13:21 PM