Harborside Announces Agreement to Acquire Sublime for U.S. $43.8 Million

Cannabtimes

<![CDATA[OAKLAND, Calif., June 1, 2021 – PRESS RELEASE – Harborside Inc., a California-focused, vertically integrated cannabis enterprise, announced it has signed a definitive agreement to acquire 100% of the issued and outstanding equity of Sublimation Inc. ("Sublime"), an award-winning cannabis manufacturing company located in Oakland, Calif., for a total consideration of U.S. $43.8 million. The acquisition is expected to close, subject to customary closing conditions, in July 2021.Founded in 2016, Sublime is best known for its expansive line of high-potency, high-quality and affordable, Fuzzies branded pre-rolls, a leading brand of pre-rolls in the state of California, as well as vapes and roll-your-own flower kits. Since 2019 Sublime has delivered a revenue compound annual growth rate (CAGR) of approximately 70%, and ended 2020 with 7.9% California pre-roll market share, according to BDS Analytics. Sublime is strategically positioned for continued growth as pre-rolls are the fastest growing cannabis sub-segment within the California market since the beginning of 2020. Upon completion of the acquisition, Harborside expects to realize significant synergies by bringing together Sublime’s brands, production capabilities and robust distribution system with the high-quality cannabis grown at the company’s Salinas, Calif. cultivation facility, which is anticipated to result in additional gross profit and earnings before interest, taxes, depreciation and amortization (EBITDA) by extending the reach of Sublime, Harborside and Key branded products throughout the state. Harborside also expects to bolster Sublime’s marketing capabilities, which is expected to drive higher retail margins for the company as an owned brand within its portfolio. Finally, Harborside will seek to license the Fuzzies California lifestyle brand in additional legal adult-use markets across the country, particularly those that do not currently have high potency infused products.“This acquisition adds an iconic, award-winning California brand, with an exceptional product offering and consumer following, to our growing brand portfolio,” Harborside Interim CEO Peter…

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Source : Harborside Announces Agreement to Acquire Sublime for U.S. .8 Million

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