Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF), the cannabis industry financier, has entered into a financing partnership with FLRish (“Harborside”), the parent company of the Harborside dispensaries in California.
Under the deal’s terms, in exchange for royalties on sales, Tidal Royalty will provide US$10 million in financing to prospective dispensary operators licensing the Harborside brand. Each potential financing transaction for dispensaries will be evaluated on a case-by-case basis and specific financing terms will be negotiated between the companies.
“Harborside is one of the preeminent cannabis companies in the US,” said Paul Rosen, Tidal Royalty’s CEO. “Through our strategic financing partnership, Tidal Royalty would provide select operators with the capital required to launch a dispensary licensing the “Harborside” brand in exchange for a royalty on sales.”
Founded in 2006 by cannabis industry activist and entrepreneur Steve DeAngelo, Harborside is a California-licensed cannabis operator, which runs two dispensaries and one of California’s largest cultivation facilities. Its flagship location in Oakland, California is the largest medical cannabis dispensary in the US.
READ: Tidal Royalty makes strategic investment in Lighthouse Strategies, maker of the first non-alcoholic cannabis-infused craft beer
The transaction increases Tidal Royalty’s portfolio of investments in licensed cannabis operators and follows the company’s announcement of its financing of Lighthouse Strategies, which has developed the world’s first non-alcoholic cannabis-infused craft beer and liquor brand.
Tidal Royalty is currently knee-deep in the process of evaluating other investment opportunities across the US, including in California, New York, Illinois, Ohio, Pennsylvania, Texas and Michigan.
As part of the Harborside deal, Tidal Royalty has also purchased C$3 million of senior unsecured convertible debt units, which pay 12% interest and are convertible into Harborside common shares. The units also include warrants to purchase 87 additional common shares per unit, for 24 months after the closing date of the financing.
Tidal Royalty provides royalty financing to the U.S. regulated cannabis industry.
Shares traded 3% higher to hit C$0.17 on Wednesday.
Contact Ellen Kelleher at [email protected]