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Harborside Inc. (NASDAQ: HBORF) announced its unaudited condensed interim consolidated financial results for the third quarter of 2021 for the quarter ending September 30, 2021.
Q3 2021 gross profit of $5.4 million
Harborside generated retail revenue of $9.2 million, wholesale revenue of $2.8 million, and manufacturing revenue of $5.9 million in Q3 2021, for total gross revenue of $17.9 million, compared to $11 million, $5.2 million and nil during the quarter ended June 30. 2021, for total gross revenues of $16.2 million (“Q2 2021”). Retail revenue fell $1.8 million quarter-over-quarter as customers responded to the shutdown of government aid programs and began to move more freely as restrictions eased related to COVID have eased in the United States.
The company generated gross profit of $5.4 million from its retail operations in the third quarter of 2021, compared to $6.2 million in the second quarter. Gross profit fell due to weak sales volume in the quarter, but retail gross margin increased to 58.9% from 56.5% QoQ.
Harborside Interim President and CEO Matt Hawkins said, “While wholesale prices declined across the state of California in the third quarter, we continued to make improvements to our business, including the expanding our wholesale presence throughout California with the integration of Sublime into our operations. I am delighted that we continue to generate positive Adjusted EBITDA(1) as we relentlessly focus on our customers and work to improve capital efficiency across the business.
Hawkins added, “I would like to thank our team for their continued dedication to achieving our business goals while working tirelessly behind the scenes to push our recently announced business combination with Urbn Leaf and Loudpack to the finish line.”
Harborside enters into acquisition agreements
The Company has signed definitive agreements to purchase a leading Southern California marijuana retailer, UL Holdings Inc. (“Urbn Leaf”), and a leading California manufacturer, grower and supplier of award-winning marijuana brands, LPF JV Corporation (“Loudpack”), as previously announced. Upon completion of the acquisitions, Harborside Holdings is expected to be renamed StateHouse Holdings, subject to regulatory and shareholder approval.