Harborside Expands California Presence With Sublimation Acquisition

Harborside Expands California Presence With Sublimation Acquisition

Harborside Inc. has been one of the most respected cannabis companies to come out of California, and they keep expanding their portfolio to continue their dominance. According to MJBizDaily, Harborside recently made a massive announcement of their recent acquisition of Sublimation (“Sublime”) for a total of $43.8M. The acquisition now completes Harborside’s vertical integration across many facets including branding, retailing, cultivation, distribution, and manufacturing.

There’s been a growing trend among millennial smokers and the consumption of pre-roll joints which Sublime has been dominating. With a compound annual growth rate of upwards of 70% since 2019, the company has grown to claim 8% of the pre-rolled cones market in California through its Fuzzies brand. Sublime’s Fuzzies pack high potency with their selection of hand pre-rolled joints infused with concentrates.

It’s a mutually beneficial deal that lands Sublime products, including Fuzzies, on shelves in Harborside’s legendary dispensaries. Plus, the statewide distribution under Harborside For Harborside, access to Sublime’s manufacturing widens its own capabilities to produce new products for other brands under their umbrella. 

The breakdown of the purchase price includes an estimated $38.4M in multiple voting shares of Harborside, as well as another $5.4M in cash. It comes after Sublime gained massive momentum in 2021 with an estimated revenue of $24.6M. 

“As a leader among California brands, we are thrilled that Sublime will join the Harborside owned-brand portfolio, leveraging their production and retail capabilities to further expand the distribution of Sublime products throughout California,” said Sublime CEO, Ahmer Iqbal, in a June press release announcing Harborside’s acquisition.

Harborside’s acquisition is hopeful to bring high-quality products by working through Sublime’s brands, production warehouses, and distribution system. Additionally, Fuzzies high-potency joints could be hitting other retail markets outside of California. Harborside plans on licensing Fuzzies California lifestyle brand across the country where legal.

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