Canaccord Genuity Global Cannabis ConferenceMay 12, 2020

Proprietary & ConfidentialFigures in USD$ unless otherwise noted

CSE: HBOR

© 2020 Harborside Group. All Rights Reserved. Private and Confidential. 2

This business overview does not contain, nor does it purport to contain, a summary of all the material information concerning the Company or the terms and conditions of any potential investment in the Company. If and when you determine to proceed with discussions and investigations regarding a possible investment in the Company, prospective investors are urged to carry out independent investigations in order to determine their interest in investing in the Company.

This business overview contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "projects," "intends," "plans," "believes" and words and terms of similar substance in connection with discussions of future operating or financial performance, including the assumption used in creating projected financial information.

The Company's forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty, changes in circumstances, and the business and legal risks associated with the Company and its customers, vendors, and affiliates. The Company's actual results may vary materially from those expressed or implied and may differ materially as a result of governmentregulation, economic, strategic, political and social conditions including but not limited to the risk factors disclosed.

More particularly, financial projections are based upon a great number of variables, estimates, and judgments on matters, including those over which the Company will have no control including, without limitation, the market for the Company’s proposed services, economic conditions generally, the state of the industry, the effects of competition, and the legal and regulatory environment. The projections are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The Company will not be undertaking to update those projections or otherwise revise the projections or the assumptions upon which they are based on an ongoing basis.

There are a number of risk factors that could cause future results to differ materially from those described herein. A discussion of the principal risk factors relating to the Company’s operations and business, appear in the listing statement of the Company dated May 30, 2019 and the Company’s Management’s Discussion and Analysis of Financial Condition and Operating Performance for the three and six months ended June 30, 2019 (the “Q2 MD&A”) which are publicly available on the Company’s profile on www.sedar.com. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

This business overview contains references to “Adjusted EBITDA”, which is a non-IFRS financial measure. Adjusted EBITDA is a measure of the Company’s overall financial performance and is used as an alternative to earnings or net income in some circumstances. Adjusted EBITDA is essentially net income (loss) with interest, taxes, depreciation and amortization, non-cash adjustments and other unusual items added back. This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures presented by other companies.

There are no comparable IFRS financial measures presented in Harborside’s unaudited condensed interim consolidated financial statements. Reconciliations of the supplemental non-IFRS financial measures are presented in the Company’s Q3 MD&A. The Company believes that the measures provide information useful to shareholders and investors in understanding our performance and may assist in the evaluation of the Company’s business relative to that of its peers. For more information, please see “Non-IFRS Measures” in the Company’s Q3 MD&A available on www.sedar.com.

RISKS & DISCLOSURES

NON-IFRS MEASURES, RECONCILIATION AND DISCUSSIONFORWARD LOOKING STATEMENTS

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BEST DAY, BEST WEEK, BEST MONTH

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PRELIMINARY FISCAL 2019 AND Q1 2020 RESULTS

1 This is a non-IFRS reporting measure. For a reconciliation of this to the nearest IFRS measure, see “Use of Non-IFRS Measures” and “Non-IFRS Measures” in the Company’s management discussion and analysis for Fiscal 2019,and First Quarter 2020, to be filed on or before June 15, 2020 and July 14, 2020, respectively.2 This is forward-looking information and based on a number of assumptions. See “Cautionary Note Regarding Forward-Looking Information” and “Assumptions”.

Continued strong growth and turnaround in profitability

Previously-Issued

Fiscal 2019

Guidance

Preliminary

Fiscal 2019

Results

Preliminary

Q1 2020

Results

Revenue

Adjusted EBITDA

$50 to $52 million

negative

~$50 million

negative

~$14 million

positive

16%Year-over-Year

Revenue Growthin Fiscal 2019

20%Year-over-Year

Revenue Growthin Q1 2020

• Harborside expects to show positive cash flow from operations in Q1 2020 and ended the quarter with >$12 million in cash at March 31, 2020

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PETER BILODEAU

INTERIM CEO AND CHAIRMAN

TOM DIGIOVANNI

CHIEF FINANCIAL OFFICER

LISAH POORE

CHIEF RETAIL OFFICER

MARIAN ROBINSON

VP OF HUMAN RESOURCES

ALEXIS MORA

DIRECTOR OF MARKETING

STRENGTHENED LEADERSHIP TEAM

JACK NICHOLS

GENERAL COUNSEL & CHIEF COMPLIANCE

OFFICER

GREG SUTTON

CHIEF OPERATING OFFICER

Steve DeAngelo

CHAIRMAN EMERITUS

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RETAIL NEW STORE GROWTH

HARBORSIDESAN LEANDRO

HARBORSIDEDESERT HOT SPRINGS

• Opened December 2019

• Strategic location off 10 Freeway between Los Angeles and Arizona

• 1 of 2 dispensaries in CA with a drive-thru

• MSA in place with 10% equity ownership

• Opened February 2020

• Strategic location on 880 corridor between Oakland and San Jose

• 7,000 sq. ft., retail facility is one of three licensed to operate in San Leandro area

• Medical-only currently, expect recreational use by end of Q2 2020

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Strategically focused on growing market share in California

SHARPENED FOCUS ON CALIFORNIA

• Operating 5 dispensaries in CA (4) and OR (1)

• Opened retail dispensaries in Desert Hot Springs (December 2019) and San Leandro (February 2020)

• Exploring accretive opportunities for expansion across the State of California

HARBORSIDESAN JOSE

HARBORSIDEOAKLAND

TERPENE STATIONEUGENE

HARBORSIDESAN LEANDRO2

HARBORSIDEDESERT

HOT SPRINGS1

RETAIL FOOTPRINT

1 Desert Hot Springs dispensary opened December 2019 and operates under managementservices agreements (“MSA”).

2 San Leandro dispensary opened February 2020 and currently operates as medical-only,expect recreational use by end of Q2 2020.

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DRIVING RETAIL EXCELLENCE

Operating five dispensaries that produced nearly $40 million in retail sales in 20191

• Increased shelf penetration of in-house flower brands from 2% to >40%

• Implemented merchandising strategies

• Adopted enhanced procurement and supply chain management processes

• Targeted headcount reduction

Shelf Space Capture2

~2% Q3 2019

>40% Q1 2020

1 Based on preliminary unaudited financial results announced on April 23, 2020.

2 Shelf space capture refers to the percentage of flower sales represented by sales of in-housebrands.

gross margin uplift

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• Hired industry veteran Alexis Mora

• Insourced marketing team activities and resources

• Refreshed retail website and email

• Adopted data-driven consumer marketing

• Upcoming master brand campaign launch

ENHANCED MARKETING

Bolstered fully-integrated marketing strategies leading to more efficient and effective results

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CONTINUED DEVELOPMENT OF IN-HOUSE BRANDS

• Strong customer acceptance of Harborside brands in our retail stores

• Launched Harborside Farms Reserve February 2020 (top shelf flower)

• Launched KEY in 2019 targeting 3rd

party dispensaries (available in-house, launching state-wide by end of Q2)

• Additional brands under development

Brand PositioningTrusted rec &

wellness productsValue brand for the

cost consciousTop-shelf flower

Product OfferingsFlower

Pre-rollsVape Carts Edibles

Extracts

FlowerPre-rolls

Vape CartsEdible

Extracts

FlowerPre-rolls

Sales ChannelsIn-House Retail In-House Retail

3rd Party RetailWholesale

In-House Retail

Now have three established B2C brands:Harborside, KEY, Harborside Farms Reserve

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FOCUS ON THE FARM

Strong cultivation growth driven by increased scale of cultivation, improved product quality, and expanded distribution

• State-of-the-art Dutch Venlo greenhouse fully operational with 2nd harvest just completed (first harvest late Dec / early Jan)

• Tightened up management team and control procedures

• Expanding relationships with wholesale buyers and distributors

• Evaluating sale leaseback to unlock value in the Farm property

• Forecast 16,000 lbs. of flower in 2020

200,000 sq. ft. total capacity155,000 sq. ft. flowering canopy

45,000 sq. ft. nursery

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HARBORSIDE’S RESPONSE TO COVID-19

• Cannabis deemed an essential business in California

• Implemented additional safeguards and procedures to adhere to CDC guidelines and state/local rules

• Introduced curbside pick-up and added resources to support expanded home delivery and drive-thru

• In San Jose, limited in-store pickup and curbside pick-up to medical patients (Santa Clary County Order)

• $5 of every purchase of Harborside Reserve 1/8ths donated to the Oakland COVID-19 Relief Fund

Dedicated to providing safe and accessible wellness products

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RETAIL EXCELLENCE

CULTIVATION

HOUSE OF

BRANDS

PRODUCTION & MANUFACTURING

STRATEGY

Execution and success of our existing platform is paramount, and underpins our retail and

branded products growth strategy

• Consolidate & expand retail footprint in CA

• Continue to develop house of cannabis brands

• Optimize and scale cultivation

• Add manufacturing & production capability

• Continue as curator of cannabis products by innovating & meeting customer preferences

HOUSE OF BRANDSSCALED CULTIVATION

RETAIL EXCELLENCE PREMIUM IN-HOUSE BRANDS

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• Focused strategy in leading market: California

• Unparalleled retail track record, ubiquitous brand

• Vertically integrated model

• Managing costs. Increasing profitability

• Strong balance sheet

• Under-appreciated equity in The Farm

• Pursuing accretive expansion opportunities in CA

• Trading at well under 1x sales

INVESTMENT HIGHLIGHTS

Deep industry expertise and prominent brands in Northern California’s growing market, with a portfolio

of operating assets from cultivation to retail

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TRADING AT A SIGNIFICANT DISCOUNT

As of May 8, 2020Source: S&P Capital IQ, company press releases, company filings, Bay Street Research

EV to Sales Multiples: US Smallcap MSOs vs. Harborside

US Smallcap MSOs

Harborside (HBOR)

2020 2021 2022

1.6x 0.9x 0.9x

0.4x n/a n/a

THANK YOU

Peter Bilodeau

Interim CEO and Chairman

(519) 919-6500

Matt Chesler, CFA

Investor Relations

hbor@mattio.com