California-based cannabis company Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) upsized its previously announced brokered private placement of units of the company at a price of C$2.55 per SVS Unit for gross proceeds of approximately C$27 million, representing an increase of C$7 million, due to excess demand. The stock was lately selling near $2.22, which isn’t far from the company’s 52-week high of $2.40.
ATB Capital Markets and Beacon Securities Limited are co-lead agents to the offering. The company said it expects to use the net proceeds from the offering for general corporate and working capital purposes. The company said in a statement that it has granted the Agents an option to sell up to an additional 15% of the Units in the Offering, exercisable in whole or in part at any time prior to the closing of the Offering. As previously announced, Entourage Effect Capital, LLC, one of the largest shareholders of Harborside, is participating in the offering with approximately C$9.0 million in commitments.
Harborside has been making some moves in the C-suite and the board lately. Last week, it was announced that Chief Operating Officer Greg Sutton stepped down from his position effective January 15, 2021. At the time Interim CEO Peter Bilodeau said, “On behalf of the whole team, I want to extend my heartfelt appreciation to Greg for his contributions and tireless efforts during his tenure with Harborside. We wish him the best in his future endeavors.” At the beginning of the month, the company announced that it and Steve DeAngelo were separating and that the company was eliminating the role of Chairman Emeritus, effective December 31, 2020.
At the time Steve DeAngelo said, “Harborside was founded on the principle of providing safe and affordable access to cannabis for those who require it. I’m proud of the immense work that has been completed to get us to where we are today and wish the very best for the company as it continues to grow. Moving forward, I will continue to focus on environmental, social and corporate governance (ESG) issues and opportunities in the legal cannabis industry.”