Harborside Inc. Announces Increased Interest in Haight-Ashbury Dispensary
OAKLAND, Calif. and TORONTO, Feb. 15, 2022 /PRNewswire/ – 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.
Matthew Hawkins, Chairman and interim CEO of Harborside
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.
Harborside, a vertically integrated enterprise with cannabis licenses covering retail, distribution, cultivation, nursery and manufacturing, is one of the oldest and most respected cannabis companies in California. Founded in California in 2006, Harborside was awarded one of the first six medical cannabis licenses granted in the United States. Today, the company operates three major dispensaries in the San Francisco Bay Area, a dispensary in the Palm Springs area outfitted with Southern California’s only cannabis drive-thru window, a dispensary in Oregon, a manufacturing facility in Oakland, California, distribution facilities in San Jose and Los Angeles, California and an integrated cultivation/production facility in Salinas, California. Harborside is a publicly listed company, trading on the CSE under the ticker symbol “HBOR” and the OTCQX under the ticker symbol “HBORF”, and the Company continues to play an instrumental role in making cannabis safe and accessible to a broad and diverse community of California and Oregon consumers. Additional information regarding Harborside is available under Harborside’s SEDAR profile at www.sedar.com.