Harborside Inc (CSE: HBOR) this morning announced that it has closed the previously announced acquisition of FGW Haight, a firm that owns a cannabis retail dispensary in San Francisco within the historic Haight Ashbury area. With the close of the transaction, Harborside now owns a majority interest in the retail location.
The acquisition of the dispensary brings the firms total cannabis dispensary network to five locations within California, while also enabling the firm to operate in a culturally significant area of San Francisco. The dispensary, upon completion of the required build-out and receiving the required approvals, is currently expected to be opened in Q3 2021.
The transaction saw Harborside acquire a 50.1% stake in the dispensary at a price of US$2.2 million. Consideration was provided via $1.3 million in chas to acquire convertible notes representing a 29.1% stake in the company, along with the issuance of multiple voting shares at C$125 per share to certain shareholders of FGW for an additional 21.0% stake in the firm.
Harborside has also entered into an arrangement to acquire a further 29.9% of the dispensary to bring its ownership position to 80%, which is currently subject to regulatory approvals. This remaining portion is to be acquired for $1.3 million, which is to be satisfied via the issuance of multiple voting shares. The firm also holds the right of first refusal to acquire the final 20% stake in the operation.
Harborside Inc last traded at $1.73 on the CSE.
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