(This story has been updated with a new quote from San Francisco Cannabis Retailers Alliance President Johnny Delaplane.)
Oakland, California-based Harborside said it acquired a majority stake in FGW Haight, a company that in June was awarded a conditional-use permit for a retail marijuana shop in San Francisco.
Under the terms of the deal, Harborside will receive 50.1% equity in the company in a combined cash and stock transaction totaling $2.1 million, with $1.2 million in cash and the rest to be paid in stock. The deal is expected to close by the end of the month.
Harborside also has the option to purchase more equity of FGW, up to 80% ownership, but to do so would require authorization from city officials. The FGW Haight store has also yet to fully complete the city licensing process.
The retail store is one of many city-licensed social equity businesses that are opening up over time in San Francisco, FGW Haight partner Johnny Delaplane told Marijuana Business Daily.
“So far, the city of San Francisco Office of Cannabis has issued 6 new cannabis retail permits,” said Delaplane, who is also President of the San Francisco Cannabis Retailers Alliance. “We’re probably seeing one or two new stores approved by the planning commission each month, but it’s a long way from (the) planning commission approval to doors open.”
The FGW Haight shop isn’t yet operational and still needs to be built out, according to a news release.
The store is not expected to open for business until the second or third quarter of 2021, a Harborside spokesman said.
The acquisition will bring Harborside’s footprint to:
- Five retail storefronts in California.
- A cultivation and manufacturing facility in the state.
- A retail store in Oregon.