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Harborside Poised To Take Over Another California Dispensary, Acquires 50.1% Stake In FGW

October 19, 2020 12:58 pm
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Harborside Inc. (CSE:HBOR) (OTCQX:HBORFhas acquired 50.1% of FGW Haight Inc.'s equity, which holds conditional right to operate a cannabis store in the Haight Ashbury area of San Francisco.

Under the deal, the Oakland, California-based company disclosed agreed to pay roughly $2.18 million "based on a post-build-out and proforma working capital enterprise value” of $4.35 million.

The price tag would include $1.26 million as compensation for FGW's convertible notes granting to Harborside to such number of underlying shares equal to 29.1% of the shares; and the balance of the purchase price in multiple voting shares, each worth CA$125, as compensation to particular FGW's selling shareholders for 21% of the issued and outstanding shares.

In addition, the company also opted to buy an additional 29.9% of FGW's issued and outstanding shares for approximately US$1.3 million, bringing it to an 80% stake in FGW.

Harborside noted it would retain a right of first refusal to acquire the remaining 20% stake in FGW.

Peter Bilodeau, the company's Chairman and interim CEO said they are "thrilled" to introduce its "reputation for high-quality products and excellent retail experiences" to customers in the Haight-Ashbury district.

Meantime, the acquisition comes on the heels of the revealing of the company's preliminary unaudited third-quarter financial results.

The company expects its gross revenue to reach $18.5 million for the period due to improved harvest yields and flower varieties' production.

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