Harborside Inc. (CSE:HBOR) (OTCQX:HBORF) will acquire a further 29.9% interest in FGW Haight, Inc., which owns the conditional use approval necessary to operate a cannabis dispensary and related businesses located in San Francisco’s Haight-Ashbury district.
Vertically-integrated cannabis enterprise is acquiring the increased interest in FGW through the execution of a securities purchase agreement, following the previously announced acquisition of a 50.1% interest in FGW that closed on Dec. 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 $1.3 million 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.
“I am excited to strengthen our partnership with Harborside and to continue serving our community,” Damien Posey, a leading community mentor in San Francisco and a founding shareholder of FGW stated. “This dispensary will be neighborhood-oriented, including the hiring of local staff, the selection of local products and the promotion of community safety.”