Harborside Inc. (CSE:HBOR), (OTCQX:HBORF) will undergo a mandatory conversion of all of its issued and outstanding multiple voting shares to subordinate voting shares. This follows on the implementation of certain amendments to the articles of Harborside, removing certain restrictions relating to the conversion of MVS to SVS, approved at the special meeting of shareholders held Feb. 22, 2022.
The mandatory conversion will result in each holder of MVS being entitled to 100 SVS for each MVS it holds, subject to providing the company with certain requested information, which will be requested from each holder of MVS in due course. In addition, each holder of warrants exercisable for MVS, will now be entitled to 100 SVS for each MVS underlying its MVS warrants, upon exercise of such MVS warrants. The mandatory conversion is set to occur on March 31, 2022.
"This mandatory conversion reflects feedback from the company's shareholders indicating that they want both increased liquidity and a simplified capital structure," stated Matthew Hawkins, chairman of the board and interim CEO of Harborside. "As we continue the process of transitioning from Harborside to StateHouse Holdings Inc. following the resolutions passed at the meeting, we are confident that this new capital structure will help position the company as increasingly attractive to the investment community."
Once the mandatory conversion is completed, the company will no longer meet the definition of "foreign private issuer" under U.S. securities laws and the company will be required to register under the securities exchange act of 1934, as amended. The company will eventually be subject to the U.S. securities and exchange commission's reporting requirements applicable to U.S. domestic companies. The SEC's reporting requirements will require, among other things, Harborside's financial statements and financial data to be presented under U.S. GAAP.
