Harborside Loan Breaks The Mould Says Head Honcho

“This loan is a significant milestone for the entire U.S. cannabis industry,” Matthew Hawkins, chairman of Oakland-based Harborside told Biz Journals

“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.”

Here’s the link (paywall)

https://www.bizjournals.com/sanfrancisco/news/2021/03/23/why-an-oakland-business-loan-marks-a-coming-of-age.html?mc_cid=cde3efb3b9&mc_eid=8292ba8d17

Here’s the press release

Harborside Inc (CSE: HBOR) has managed to secure a loan financing from a commercial federally regulated bank in the United States (as yet unamed) , 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 firm

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.

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