Harborside Expected to Transition to Domestic Issuer Status in United States

OAK LAND, Calif., September 27, 2021 / PRNewswire / – Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR) (OTCQX: HBORF) a California-focused, vertically integrated cannabis company, announced today that it intends, subject to shareholder approval, to amend its articles of association (the “Amendment”) to remove the restrictions on exchange of shares in the Multi-Voting Company (“MVS”). The Company believes that this change will ultimately result in more than 50% of the Company’s issued and outstanding Subordinated Voting Shares (“SVS”) being directly or indirectly owned by registered shareholders based in The United States (“USA”), with the result that the Company no longer meets the definition of “foreign private issuer” under the US securities laws and the Company under the Securities Exchange Act of 1934, as amended (the “Transition “).

When and when the transition is complete, the Company will be subject to the filing requirements of the US Securities and Exchange Commission (SEC) for US domestic companies. The SEC’s reporting requirements require, among other things, that Harborside’s financial statements and financial data are presented in accordance with US GAAP. The company expects to obtain shareholder approval for the change by the end of calendar year 2021 and has established a task force with internal and external resources to manage the transition.

Although the company will be registered with the SEC in the United States, it will continue to be an Ontario company. Harborside shareholders are not required to take any action due to the company’s transfer if and when the transfer is approved and completed, except for officers, directors, and holders of 5% or more of the company’s shares in SVS. Harborside’s SVS will continue to be listed on the Canadian Securities Exchange (“CSE”) under the symbol “HBOR” and on the OTCQX Best Market under the symbol “HBORF”.

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About Harborside:

Harborside Inc. is one of the oldest and most respected cannabis retailers in California, operates three of the major pharmacies in the San Francisco Bay Area, a pharmacy in the Palm Springs Area equipped with Southern California only cannabis drive-thru window, a pharmacy in Oregon and a cultivation / production facility in Salinas, California. Harborside has played a critical role in making cannabis safe and accessible to a broad and diverse community of people California Consumers since 2006 when it received one of the first six medical cannabis licenses issued in the United States. Today the company holds cannabis licenses for retail, distribution, cultivation, gardening, and manufacturing. Harborside is a publicly traded company trading on the CSE under the ticker symbol “HBOR” and on the OTCQX Best Market under the ticker symbol “HBORF”. For more information about Harborside, please visit Harborside’s SEDAR profile at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information

This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) as used herein United States Securities legislation. To the extent that forward-looking information in this press release constitutes “financial outlook” or “forward-looking financial information” within the meaning of applicable Canadian securities laws, readers are cautioned not to place undue reliance on such information. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as of the date of this press release. Any statement that includes discussion of predictions, expectations, beliefs, plans, projections, goals, assumptions, future events or performance (often, but not always, with phrases such as “expected” or “does not expect”, “is expected”, “Anticipates” or “does not expect”, “planet”, “budget”, “planned”, “forecast”, “estimates”, “believes” or “intends” or variations of such words and phrases or indicates that certain actions, Events or results “could” or “could”, “would”, “could” or “will” occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this press release, forward-looking statements contain, among other things, statements regarding the implementation of the change, shareholder approval for the change, changes that will result in more than 50% of the SVS in issue and outstanding. Owned directly or indirectly by registered shareholders of the Company, Completion of the Transition, and Effects of Completing the Transition.

These forward-looking statements are based on reasonable assumptions and estimates made by the company’s management at the time these statements were made. Actual future results could differ materially because forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results, performance, or accomplishments to be materially reflected in or out of future results, performance, or accomplishments such forward-looking statements are implied. These factors include, but are not limited to: the impact of the COVID-19 pandemic on the company’s operations; Fluctuations in general macroeconomic conditions; Fluctuations in the securities markets; Expectations regarding the size of the cannabis markets in which the company operates; changing consumer habits; the company’s ability to successfully achieve its business objectives; Expansion plans; political, social and ecological uncertainties; Inability to obtain adequate insurance to cover risks and hazards; Employee relations; the existence of laws and regulations that may restrict the cultivation, production, distribution and sale of cannabis and cannabis products in the markets in which the company operates; and the risk factors set out in the management’s discussion and analysis for the past quarter June 30, 2021 and the company’s listing statement dated May 30, 2019available under the company’s profile at www.sedar.com. Although the forward-looking statements contained in this press release are based on assumptions that the company’s management believes or at the time believed to be reasonable, the company cannot assure shareholders that actual results will correspond to these forward-looking statements. as there may be other factors that cause results not to be as expected, estimated or intended. Readers are cautioned not to place undue reliance on the forward-looking statements and information in this press release. The company assumes no obligation to update any forward-looking statements about beliefs, opinions, projections or other factors should they change, unless required by law.

The company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis markets in, through several of its subsidiaries. involved The United States. Local state laws in which the company operates permit such activities. However, investors should be aware that there are significant legal restrictions and regulations that the cannabis industry is in. rules The United States. Cannabis is still a List I drug under U.S. Controlled Substances Act, making it illegal under federal law The United States to, among other things, grow, sell or own cannabis in The United States. Financial transactions with proceeds from cannabis-related business activities or their purpose in promoting business activities in The United States may provide the basis for law enforcement under applicable US federal money laundering laws.

While the approach to enforcing such laws by the federal government in The United States There is a tendency towards non-enforcement against individuals and companies following recreational and medicinal cannabis programs in states where such programs are legal to provide defense against any federal lawsuit that may be brought against society. Enforcement of federal law in The United States poses a significant risk to the Company’s business and any resulting legal action against the Company could adversely affect the Company’s business and financial performance.

This press release does not constitute an offer to sell, solicitation of an offer to buy, or any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any other state securities laws, and may not be used within. offered or sold The United States or to or for the account of or for the benefit of US persons (as defined in Regulation S of the 1933 Act), unless registered under the 1933 Act and applicable state securities laws or there is an exception to such registration requirements.

The CSE has neither approved nor disapproved of the contents of this press release. Neither the CSE nor its Market Authority (as that term is defined in the guidelines of the CSE) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE Harborside Inc.