Harborside, Inc.

Harborside is a vertically-integrated cannabis company focused on the Northern California market and built around recognized brands. The company currently operates a cultivation facility and six retail dispensaries in California and Oregon. Since inception, the company has generated over $450M in cumulative sales.

Founded in 2006 by industry veterans and activists Steve DeAngelo, considered as the father of the legal cannabis industry, and dress wedding, Harborside has played an instrumental role in making cannabis safe and accessible to a diverse community of consumers and continues to be a leading advocate for diversity, environmental sustainability, and economic justice in the cannabis sector. Harborside made history when it became one of the first six dispensaries licensed in the US, and again in 2018 when it sold the first gram of legal cannabis to an adult in California.

Harborside operates retail locations in Oakland, San Jose, San Leandro, Desert Hot Springs, San Francisco, and Eugene. The company also has a 47-acre farm in Monterey County. The strategically-located dispensaries serve more than 300,000 registered customers and the management team is currently exploring acquisitions of additional retail locations across California.

A dominant player in the world's largest cannabis market

California is a HUGE market - the potential and growth eclipse the combined value of Florida, New York, Massachusets, and Nevada. Sales in California hit $5.6 billion in 2021 and it is expected to reach $7.5 billion in 2025.

You can’t possibly be the leader of the industry and not have a meaningful presence in the largest cannabis market in the world. Even if it’s not ideal, even if it’s complex, even if it doesn’t provide the highest and fastest return on invested capital – you’ve got to be there and you better figure out how to make it work.
- Cresco Labs CEO and founder Charlie Bachtell (WeedWeek)

A solid acquisition target with massive upside

California is one of the most important cannabis markets and certainly the most mature so it's no doubt big players are interested. Many of the Multi-State Operators have already made a move in California, but others are still looking to enter the market in a meaningful way.

Cresco Labs became one of the biggest players in California when it acquired Origin House, a company with several brands in California. Curaleaf entered California by acquiring Select vape brand which operates manufacturing and distribution in California. Columbia Care has 6 stores in California along with cultivation and distribution operations. Terrascend operates 5 stores in California with cultivation and manufacturing operations. The Parent Company, backed by JAY-Z, has recently come public with a mission to both consolidate the California cannabis market and create an impactful global company.

But other MSOs have still have not entered the largest cannabis in the world and could be looking for acquisitions. We think Harborside is very undervalued, and as a key player in California it checks all the boxes to become a takeover target for a larger competitor looking to enter the market.

The analyst firm Beaton Securities also pointed out Harborside is a very interesting takeover target.

With HBOR well established as the Master Yoda of Californian cannabis, we expect the company to become an increasingly attractive target, particularly upon resolution of the outstanding tax liabilities.
- Russel Stanley, Beacon Securities (February 19, 2021)

Impressive financial results

Harborside owns some of the largest retail cannabis locations in the world. The sales per square feet are one of the highest in the cannabis space. In the fourth quarter, Harborside's revenue grew by 29% and its total gross margins improved from 22.1% to 49.9%, driven by improved harvest yields, higher wholesale volumes, and tight expense management.

Harborside generated full year 2020 gross revenues of approximately $63.4 million, which represents a 29.4% year-over-year increase from approximately $49.0 million which was generated during full year 2019. Adjusted EBITDA for FY 2020 was approximately $7.4 million, or 12.3% of net revenues, compared to negative Adjusted EBITDA of approximately $(8.9) million for FY 2019.

What's next for Harborside?

In January 2021, Harborside announced that for 2021, it expects standalone gross revenues of between $68 to $72 million. Adjusted EBITDA is expected to be between 15% to 17% of net revenues for the year. The anticipated increase in revenues is expected to be derived from improved retail pricing along with continued increases in both flower yields and processing efficiencies from the Company's wholesale operations.

Harborside is also in the process of settling with the IRS regarding the 280E tax. The company is currently trying to negotiate a fair payment plan with the IRS to pay the debt.

Harborside is strategically focused on increasing its market share in California with acquisitions and new store openings. The company is also planning to expand its ecosystem of Harborside brands, including the recently announced acquisition of Sublime and their award-winning Fuzzies branded pre-rolls.

Harborside is our #1 Top Pick in California

We believe Harborside is the best public company to get exposure to the world's biggest cannabis market. The company is well positioned to be a dominant player in the industry and could be a takeover target for larger Multi-State Operators looking to increase their presence in the Californian market.

Key Metrics

113 M

MARKET CAP (5/1/21)

64 M


7.4 M

EBITDA (2020)



200 K


20 %


49.9 %


300 K


California Is The World's Biggest Legal Cannabis Market

California represents 21% of the US Adult Use cannabis market and is the cultural epicenter of the industry.

  • Different regulatory environments in each state limit the synergies in a multi-state expansion strategy
  • Strong CA state government support and stable regulations
Additional Growth Potential
  • Only 2.2 stores per 100,000 residents currently open (OR: 17.4 | CO: 10.0 | NV 2.5 | MI: 2.2)
  • Greenhouse cultivation effective year-round
  • Should interstate commerce be legalized it offers the ideal climate for cultivation hubs
Cannabis History
  • Most respected cannabis culture in the world
Source: Harborside Investor Presentation

Fast growing market

According to the MJBizDaily, sales in California hit $4.4 billion in 2020, up 57% from the year prior, compared with $2.8 billion in 2019 and $1.4 billion in 2018. Over five years the total California cannabis market will grow at a compounded annual rate of 18.5% to $5.6 billion by 2021. It is expected to reach $7.5 billion in 2025.

Looking ahead, industry insiders don’t expect 2021 to be much different. If anything, analysts said, sales will continue to climb. It's only a question of how big the numbers will get. But the market in California is highly fragmented and undercapitalized. It is ripe for consolidation.

Source: MJBizDaily

Revenue growth has finally taken off in California

California remains a challenging market, but, after a long period of stagnation following the simultaneous rollout of regulated medical and adult-use cannabis in 2018, the revenue growth has really taken off. According to BDSA, sales in April grew 42% from a year ago, the strongest gain to date, as they hit a record $357 million.

Source: New Cannabis Ventures

Backed by Entourage Effect Capital, formerly known as Cresco Capital Partners

Entourage Effect Capital launched in 2014 under the name Cresco Capital Partners. The firm was an early investor in companies like Green Thumb Industries, Terrascend, Acreage Holdings, Akerna, Ebbu, Grow Healthy (acquired by iAnthus), and many others. Entourage Effect Capital allocated over $200 million since 2014 into 65+ cannabis companies, with its first fund returning close to two times capital after the next distribution, according to Hawkins.

In February 2021, Entourage Effect Capital reported a 21.11% ownership in Harborside on a partially diluted basis.

Matt Hawkins, founder of Entourage Effect Capital, recently came on as Chairman of Harborside, with the goal of being the best single state operator. Entourage Effect Capital reached an agreement with the company to take over the board and handpicked uniquely qualified individuals to manage the company. The firm has also helped Harborside to raise money.

"The main thing that we wanted to do is that we want to become the preeminent single state operator in California. And we're going to do that through measured M&A activity, that's ongoing right now. I think you'll see over the next, hopefully, three to six -- or even one to six months that Harborside's going to do the things we said we're going to do, and we're just excited about the immediate future."
- Matt Hawkins, founder of Entourage Effect Capital (Seeking Alpha)

Taking over the Harborside board through a dissenting shareholder movement was one of Entourage Effect Capital's biggest moves in 2020, according to Hawkins. Entourage Effect Capital has three goals for Harborside: hire a world-class CEO, pursue accretive M&A opportunities and settle with the IRS on 280E issues. EEC plans to make Harborside a large player in the cannabis industry, both on the retail side, the manufacturing side, and the cultivation production side.

Recent Acquisitions

Harborside is very careful about how it spends its money. The company indicated that its pending acquisition of Sublime was at 1.7X 2021 projected revenue.



  • Acquisition of Sublime for US$43.8 Million (June 2021)
  • Award-Winning infused pre-roll brand
  • Ranked #1 by market share
  • Expected to produce 2021 sales of $24.6M
  • Sublime's products are carried by 500+ dispensaries in California
  • Harborside plans to expand product offering across owned retail and wholesale market
  • Harborside will seek to license the brand in additional markets across the country
  • Acquisition is expected to close in July 2021


Salinas Campus

  • Acquisition of Salinas Production Campus (June 2021)
  • Bought for $10.84 million in funds drawn from its existing credit facility
  • includes 200,000 sq. ft. of licensed cultivation space
  • 45,000 sq. ft. of nursery space
  • Facility upgrades will be completed in Q2 2021
  • Upgrades will increase revenue by 10% and production by 7%
  • Enables the Company to keep up with increasing consumer demand


15% Equity Stake in Loudpack

  • $5 Million Investment in Loudpack (March 2021)
  • Loudpack is a leading privately-held, vertically-integrated cannabis brands company
  • Loudpack cultivates, manufactures, processes and distributes cannabis products to retailers statewide in California
  • Also licenses its wholly owned brands to operators in other markets
  • Brands distributed in California include Kingpen, Loudpack, Dimebag, and Smokiez


San Francisco Dispensary

  • 50.1% Equity Stake in FGW Haight, Inc (December 2020)
  • Conditional approval to operate a cannabis dispensary and related businesses in the Haight Ashbury area of San Francisco
  • New location will introduce best-in-class service and unbeatable product selection to an iconic area of San Francisco
  • Company expects to open the retail dispensary in Q3 of 2021.

Price Target: C$4.75 - C$16.70

Harborside wins price target increase to C4.75 from Beacon Securities

On June 2, 2021, analyst Russel Stanley of Beacon Securities reasserted his BUY rating for HBOR while increasing his price target to C$4.75 (previously C$4.00) which at publication time represented an upside of 105%

Russell says Harborside represents a very attractive opportunity. "Harborside has completed the purchase of its 47-acre production campus in Salinas", he says. "The fact that the lender is a federally regulated commercial bank speaks very well of HBOR’s fundamentals. In this morning’s announcement, management also noted that it looks forward to expanding this banking relationship", Stanley wrote.

"We value HBOR using a 12.5x multiple applied to our forecast for F2022 EBITDA. This multiple represents a 32% discount to the 18x average at which the US operators trade, and a 27% discount to the 17x average amongst the three largest MSOs", Russel wrote.

The analyst also notes Harborside is well positioned to pursue multi-store acquisitions in both Northern and Southern California. Stanley thinks HBOR will generate 2021 and 2022 net revenue of $76 million and $115 million, respectively, and 2021 and 2022 adjusted EBITDA of $13 million and $30 million, respectively. The analyst said HBOR is currently trading at a 44% discount to its peers, at 7.5x his 2022 EBITDA forecast vs a 13.4x average among american cannabis operators.

Russell Stanley is ranked #471 out of 7,547 analysts on TipRanks, with an average return of +32.9%

Harborside could be worth up to C$16.70 per share

D. H. Taylor, an economist and active contributor to Seeking Alpha, sees even more upside in Harborside. In an article posted in January 2021, he says Harborside is undervalued and positioning for significant gains.

"Future earnings are projected to come in ~$72M for Dec 2021. At an average of 14% net earnings, that places the earnings at $10M, assuming the company can achieve that metric. There are 21.9M shares outstanding giving future earnings a $0.46 EPS. At the average of 30x earnings for the S&P 500, this puts the future of the stock at a U$13.80 (C$16.70) valuation", he says.

Cannabis Cultivation Operations in California

The Salinas Farm
  • 5 active greenhouses
  • 200,000 square feet of licensed cultivation space
  • 20,000 lbs annual flower production
  • 47 acre in size
  • One of the smallest carbon footprints in the industry
  • World-class nursery delivers a wide selection of first-rate clones
  • Separate buildings on site for drying and processing
  • Flower is dried within state of the art Darwin Chambers
The Venlo Greenhouse
  • Cultivates premium flower using sustainable practices and adheres to California’s rigorous horticulture and harvesting standards
  • State-of-the-art Dutch Venlo greenhouse (44,000 sq ft)
  • 47 acres of prime Salinas farmland
  • Expansion potential is significant
  • Experienced Team incorporating both cannabis and big-ag backgrounds

Harborside Retail Footprint

Recognized globally for excellence in cannabis retail, harborside's retail dispensaries have over 15 years of operating history. Harborside's Oakland dispensary received one of the first six commercial cannabis licenses issued in the US and is one of the largest retail cannabis locations in the world.

Strategic Retail Locations By The Numbers
  • $42 million in 2020 retail sales
  • 51.3% gross margin
  • Over 1,300 daily customer transactions
Award-Winning Dispensaries and Captive Shelf Space
  • Named "Best Dispensary in California" by the Cannabis Awards
  • Vertical integration allows to promote in-house brands
Active M&A Pipeline
  • Management is exploring acquisitions of additional retail locations across the state

The History of Harborside

Founded in 2006, Harborside has consistently lead the charge in the creation of the modern cannabis industry. Harborside was originally set up as a non-profit ethical enterprise to help patients who needed cannabis to treat their medical conditions. Steve DeAngelo, the founder of Harborside is known as The Father of Legal Cannabis.

Harborside was the first cannabis retailer in the country to demand rigorous lab testing for all products to ensure that they are free of pesticides and other impurities, and contain verifiable potency levels of THC and CBD, and continues today to set the bar for cannabis compliance.

Harborside was also the first cannabis retailer in the nation to support education for seniors, veterans and families with severely ill children (including the treatment of children with Dravet Syndrome). In addition, Harborside was the first to offer CBD-rich cannabis products.

A decade of hard work paid off on January 1, 2018, when DeAngelo, sold the first gram of legal cannabis to an adult in California. This historic event marked the end of prohibition and the birth of the modern cannabis industry.

Steve DeAngelo, the Father of the Legal Cannabis Industry

Steve DeAngelo, the founder of Harborside, is an American cannabis rights activist and advocate for cannabis reform in the United States. DeAngelo is a globally recognized cannabis leader who was dubbed “The Father of the Legal Cannabis Industry” by former Speaker of the California Assembly & 41st Mayor of San Francisco, Willie L. Brown, Jr. He has organized grassroots community campaigns and appeared on national television networks advocating for legalization, and created a model medical cannabis dispensary. Rooted in DeAngelo's belief that cannabis use should be wellness-centric, Harborside was one of the first in the nation to support comprehensive cannabis education for seniors, veterans, and families with severely ill children.

DeAngelo is the recipient of the 2015 High Times Lester Grinspoon Lifetime Achievement Award and was named one of the most influential people and "gatekeeper of the industry" in 2015 by the International Business Times. In 2016 he was named one of the seven “Most Powerful People” in America's cannabis industry by Fortune. Most recently, he was honoured with the Peter Tosh Equal Rights Award and inducted into the Marijuana Business Daily inaugural Hall of Fame.

Executive management team

Peter Bilodeau
Peter Bilodeau

Interim Chief Executive Officer

Serial entrepreneur across various sectors, including cannabis retail, real estate, oil & gas, investment banking and corporate services President and CEO of Foundation Markets Inc. and FMI Capital Advisory Inc. Prior to FMI, Peter worked for one of Canada's major chartered banks quickly advancing to the senior management ranks. He is a former real estate appraiser with extensive experience in various types of real property valuation

Tom DiGiovanni
Tom DiGiovanni

Chief Financial Officer

Former CFO and Chief Compliance Officer at Canndescent where he helped scale the company into one of the leading brands of luxury flower in California, as well as a multi-state brand operator Prior to joining Canndescent Tom served as the CFO of Mainstream Energy where he managed growth rates of more than 100% per year, and helped consummate the merger of Mainstream Energy into Sunrun Inc (NYSE: RUN)

Jack Nichols
Jack Nichols

General Counsel & Chief Compliance Officer

Co-Founder of FLRish Inc with 20+ years of prior regulatory enforcement experience at the local, state, and federal level. In six years with Harborside has overseen all legal matters for the company including mergers and acquisitions, business development, capital raises, governance, litigation, and regulatory compliance. Serves on the California Cannabis Industry Association's Federal Policy Advisory Team working with government and private industry representatives to advance federal cannabis legislative initiatives.

Conrad Gregory
Conrad Gregory

Senior Vice President of Compliance and Government Affairs

Conrad Gregory leads the government relations and compliance activities of Harborside Inc., one of the oldest and most respected cannabis brands in the United States. His work covers the policy and politics of the cannabis industry as well as the development of current and future licenses. Prior to joining Harborside, Gregory helped run several successful political campaigns at the local, state and federal levels before moving to Sacramento to work for then-Lieutenant Governor Gavin Newsom as Chief Consultant for Economic Policy. Gregory's work culminated in overseeing the Lt. Governor's Blue Ribbon Commission on Marijuana Policy, which ultimately influenced Proposition 64 to legalize cannabis in California. In addition to his work at Harborside, Gregory currently serves as the Board President of the California Cannabis Industry Association (CCIA) and is a founding member of Oakland Citizens for Equity and Prosperity (OCEP).

Marian Robinson
Marian Robinson

Vice President of Human Resources

We welcome Marian Robinson as our new VP of HR beginning at the start of Q2 2020. Ms Robinson is a Human Resources executive with 13 years experience designing and leading HR strategic initiatives, developing talent, and creating HR best practices, policies and processes in alignment with the needs of the business. Ms. Robinson was hired for her extraordinary capabilities to oversee the changing landscape that our industry must maneuver on a weekly basis with a proven track record for talent acquisition. Before joining us at Harborside, she held senior executive positions at Target, Orchard Supply Hardware, a 100 store retail chain with 5,000 associates, and most recently was the Senior Director of Human Resources at the largest Planned Parenthood affiliate in the country.

Alexis Mora
Alexis Mora

Head of Marketing

Alexis Mora is a creative problem-solver and strategist who loves building and scaling brands to a global level. In 2016, her "Dia de los Muertos" Campaign for Nestlé won Top Shop's Top 100 Award and her work at BLOOM FARMS, a top ten Cannabis brand in 2018 and 2019, has been featured in Vogue, Rolling Stone, LA TIMES, SF Weekly, and more. She specializes in crafting memorable customer experiences while driving ROI through digital, retail, and event platforms. Her work spans internationally in health and wellness, active lifestyle, cause marketing, functional beverage, and cannabis industries.

Pedro Fonseca
Pedro Fonseca

Director of Retail

Pedro Fonseca comes to Harborside with over 32 years of natural food and retail experience, most recently with Whole Foods market for over 27 years. Pedro has held several positions, from leading retail facilities to Executive Vice President of Retail Operations and Executive Vice President of new store development and construction across the US and Canada, overseeing over 85 retail locations and 10,000 employees, resulting in 1.2 billion dollars in sales across the mid-Atlantic region. Pedro’s passion is building teams and businesses through mentoring, motivating, communication, collaboration, and an inclusive culture. Pedro is passionate about interdepartmental collaboration and partnership, from marketing to supply chain, resulting in fully integrated programs and processes.

Matthew Hawkins
Matthew Hawkins


Matt Hawkins is the founder and managing principal of Entourage Effect Capital (EEC), formerly known as Cresco Capital Partners, a private investment firm focused specifically on investing in the legalised cannabis industry and has made close to 70 cannabis investments since 2014. Prior to the founding of EEC, he was a partner and President of a private real estate investment company which acquired REO and NPL from banks and financial institutions across the country. The company completed more than 55 bank-direct acquisitions, deploying over $500 million of capital since Q4 2008. At the end of 2013, Matt and his partners sold their interest. Prior to this, Matt was a Principal/Co-founder of San Jacinto Partners, a fund focused on the bulk acquisition of single-family residential assets and the Managing General Partner of Adjacent Capital, L.P., a private equity/specialty lending fund. He was earlier affiliated with Treadstone Partners, L.L.C., a distressed debt and equity fund. He has an extensive background in both turnaround management and private equity. Prior to joining Treadstone and forming Adjacent Capital and San Jacinto Partners, was associated with Hull & Associates, a regional turnaround management firm. Matt is a graduate of The University of Texas at Austin

Andrew Sturner
Andrew Sturner


28+ years of venture and entrepreneurship. Had 2 IPOs (SPLN & MOFN) and several exits. Serves on multiple for-profit and not-for-profit boards. Andy is a seasoned senior executive, c-suite officer, founder, serial entrepreneur and Board Member with success across technology, media, internet, real estate, and cannabis. Prior work highlights: Miami Angels - Co-Founder, CBS SportsLine - President of Corporate & Business Development, MovieFone - Vice President of Business Development, Washington University - B.S.B.A., Brooklyn Law School - J.D.

Community Involvement

Harborside is changing the future of the cannabis industry for the better by contributing to the cause

Last Prisoner Project

  • Non-profit organization dedicated to criminal justice reform
  • Harborside is the primary partner of the Last Prisoner Project as well as their “Roll It Up For Justice” program, resulting in donations of over $123K to date

Cannabis Is: Love and Diversity

  • Harborside marketing campaign which creates shelf space and supports for BIPOC and LGBTQ+ through inclusive buying practices

Harborside Academic Fund

  • Established at Peralta College through its newest Cannabis Certification Program
  • Help those who enter the cannabis space with a curriculum to develop a portfolio of skills for the industry including a grasp of supply chain, consumer trends, and market demands
  • Harborside has committed $10k per year to this effort

Oakland’s COVID-19 Relief Fund

  • Proceeds will go to our most vulnerable communities including first responders, seniors, children, people experiencing homelessness, and local businesses
  • Harborside Oakland has donated over $10,000 to the program to date

Strong 2020 Performance


Harborside Cannabis Farm Tour with Steve DeAngelo

HBOR.CN - Interactive Stock Chart


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Cannabis Total Addressable Market (billion U.S. dollars)

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DISCLOSURE: Harborside is a client of Upside Makers, the parent company of WeedStreet420. The author has been compensated to cover Harborside on and provide public dissemination of favorable information. No investment advice is given. Not a recommendation to buy or sell. Always do your own due dilligence consult a licensed advisor before purchasing a security. We may buy or sell additional shares of Harborside in the open market at any time, including before, during or after the campaign. Please read our full disclaimer.