Harborside Raises CA$35.1M Via Brokered Private Placement

Cannabis company Harborside Inc. HBOR HBORF recently raised some CA$35.1 million (US$27.8 million) through a brokered private placement.

The Oakland, California-based company closed its previously announced upsized brokered private placement of its units at CA$2.55 per SVS Unit, issued to non-U.S. residents and CA$255.00 per MVS Unit, issued to the U.S. investors.

Each SVS Unit includes one Harborside's subordinate voting share and one subordinate voting share purchase warrant allowing the acquisition of one subordinate voting share at CA$3.69 per share within three years, following the closing of the offering.

MVS Units are comprised of Harborside's multiple voting shares and multiple voting share purchase warrants worth equal to 100 subordinate voting shares.

Beacon Securities Limited and ATB Capital Markets acted as agents for the offering.

"We remain focused on continuing to build scale in the California market by optimizing and generating further efficiencies at our Salinas farm while continuing to provide best-in-class retail experiences and the high-quality cannabis products our customers in California have come to expect from Harborside," Interim CEO Peter Bilodeau noted.

In October, the company purchased 50.1% of FGW Haight Inc.'s equity for $2.18 million.

FGW has a conditional right to run a cannabis store in the Haight Ashbury area of San Francisco.

Harborside is poised to acquire an additional 29.9% of FGW's issued and outstanding shares for roughly $1.3 million.