OAKLAND, CA and TORONTO, Ontario – October 12, 2020 – Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR), (OTCQX: HBORF), a California-focused, vertically integrated cannabis enterprise, today announced preliminary unaudited third quarter 2020 financial results for the period ending September 30, 2020 (“Q3 2020”). All dollar amounts in this press release are in U.S. dollars.
“I’m thrilled with the ongoing performance of our business and proud to have seen the whole Harborside team rally together this year,” said Peter Bilodeau, Chairman and Interim CEO of Harborside. “We have come a long way in just 9 months and today more than ever, we are well positioned to take advantage of the opportunities ahead of us while continuing to provide our customers with the highest quality products and driving strong returns for our shareholders.”
Preliminary Third Quarter 2020 Financial Results Highlights
Gross Revenue for Q3 2020 is expected to exceed $18.5 million (excluding any previously unaccounted for adjustments for reserves). Growth in the quarter continues to be driven by improved harvest yields and production of premium flower varieties combined with higher sales volumes and higher average prices per pound of the Company’s farm operation in Salinas, California combined with the strength of the Company’s retail operations, where enhanced merchandising and pricing initiatives have resulted in, amongst other things, improved product mix, selected pricing changes and higher sell-through of internally produced products. .
In addition, the Company expects to continue to report positive adjusted EBITDA in Q3 2020, due largely to the strategic initiatives implemented earlier this year, which resulted in improved operating efficiencies and headcount reductions across the Company.
These preliminary and unaudited operating metrics and financial results are subject to the Company’s customary annual and interim closing, as well as financial statement procedures by the Company and its auditors. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See “Cautionary Note Regarding Forward-Looking Information” and “Assumptions” below. See “Non-IFRS Financial Measures, Reconciliation and Discussion.