Harborside Inc. completion of private placement

On Feb. 18, Harborside Inc. (“Harborside”), a California-focused, vertically-integrated cannabis enterprise, completed a brokered private placement offering of units for aggregate gross proceeds of approximately $35 million. Beacon Securities Limited and ATB Capital Markets (the “Agents”) acted as co-lead agents in connection with the offering.

The offering was completed through the issuance of a combination of subordinate voting share units (“SVS Units”) and multiple voting share units (“MVS Units”). The SVS Units were issued to non-residents of the U.S., with each SVS Unit comprising one subordinate voting share (an “SVS”) and one SVS purchase warrant. Each warrant is exercisable to acquire one SVS for a period of 36 months following closing at an exercise price of $3.69 per SVS, subject to adjustment and acceleration. All investors that were considered residents of the U.S. under applicable U.S. securities law were issued MVS Units comprising multiple voting shares (“MVS”) and MVS purchase warrants, based on the same economic equivalency of each MVS converting into 100 SVS.

Aird & Berlis LLP represented Harborside with a team composed of
Sherri Altshuler,
Adria Leung Lim,

Amy Marcen-Gaudaur,
Meredith McCann,

David Mba (corporate and securities).

Stikeman Elliott LLP represented the Agents with a team composed of
Donald Belovich
Brian Lynch,

Alexander Tashos (corporate and securities).