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

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

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

Related News

Harborside: Beacon Initiates Coverage With $4.00 Price Target

Beacon Securities has initiated coverage on Harborside Inc (CSE: HBOR) with a C$4 price target...

Sunday, February 21, 2021, 02:33:00 PM

Harborside Closes On Acquisition Of Salinas Production Campus

Harborside Inc (CSE: HBOR) has closed on the purchase of its production campus. Referred to...

Wednesday, June 2, 2021, 07:29:48 AM

Harborside To Expand Capacity At Salinas Farm, Launch Branded Clone Sales

Harborside Inc (CSE: HBOR) is evidently focused on expansion. The company this morning announced a...

Friday, November 6, 2020, 08:08:18 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 Sees Beacon Securities Reiterate $4.75 Price Target

Harborside Inc (CSE: HBOR) this past week announced that they have completed their facility upgrades...

Saturday, July 3, 2021, 12:50:00 PM