Harborside Inc. (“Harborside”, or the “Company”) (CSE: HBOR) (OTCQX: HBORF), a California-focused, vertically-integrated cannabis enterprise, today announces the acquisition (the “FGW Acquisition”) of a further 29.9% interest in FGW Haight, Inc. (“FGW”), a company that has the conditional use approval necessary to operate a cannabis dispensary and related businesses located in San Francisco’s Haight-Ashbury district.
Harborside is acquiring the increased interest in FGW through the execution of a securities purchase agreement (the “Agreement”), following the previously announced acquisition of a 50.1% interest in FGW that closed on December 18, 2020. Subject to regulatory approval from the City of San Francisco, the FGW Acquisition will increase the Company’s interest in FGW to 80%. Harborside also retains the right of first refusal to purchase, in its discretion, in whole or in part and in one or more closings, the remaining 20% of FGW, subject to regulatory approvals.
Pursuant to the Agreement, Harborside will pay an aggregate purchase price of USD$1,300,650 (the “Purchase Price”) for the Shares. The Purchase Price will be satisfied through the issuance of multiple voting shares of the Company, valued at the greater of: (i) the 30-day VWAP of the subordinate voting shares of the Company on the CSE at the time of issuance less a discount multiplied by 100; (ii) CAD$150 per MVS; or (iii) such other price as may be approved by the CSE.
“This dispensary in the historic and culturally-significant Haight-Ashbury district will enhance Harborside’s position as a leading cannabis retailer in California,” added Mr. Hawkins. “Our position in Northern California is already very strong and we expect to expand it significantly following the creation of StateHouse.”
“I am excited to strengthen our partnership with Harborside and to continue serving our community,” said Damien Posey, a leading community mentor in San Francisco and a founding shareholder of FGW. “This dispensary will be neighborhood-oriented, including the hiring of local staff, the selection of local products and the promotion of community safety.”
The FGW Acquisition is subject to certain material closing conditions, including approvals from regulatory authorities. There can be no assurance that the FGW Acquisition will be completed on the current terms or at all. Closing of the FGW Acquisition is expected to occur on or before February 28, 2022.
