Halo Labs Inc. (NEO: HALO)(OTCQX: AGEEF) is acquiring Cannalift Delivery Inc. in exchange for C$3.41M common shares of Halo at a deemed price of C$0.11 per share. The Cannalift vendor is also helping Halo secure a non-brokered private placement of up to C$700,000. Both the acquisition and private placement are expected to close on or before March 10, 2020.
Cannalift is a software company that is developing an application to introduce a new and convenient method for obtaining cannabis products. The company said in a statement that the application will deliver any products from local dispensaries to consumers through an intuitive application and website, subject to regulatory approvals.
“Adding Cannalift to Halo’s portfolio is a promising step in building our operations in North America,” said Halo President Katharyn Field. “With ongoing supply constraints in North America and the lack of delivery options, being an early operator in a demanding space for direct to consumer delivery will put Halo ahead of the competition. With the recently announced planned acquisitions of the KushBar Brand, the NOHO dispensary and intended acquisitions of future retail cannabis locations, Halo will be in a position to deliver high-quality cannabis products to consumers both in-store and at home, subject to regulatory approvals and local laws.”
Cannalift will only be a delivery platform for consumers and will not carry any cannabis supply, but rather mediating between consumers and dispensaries. The platform also offers up-to-date supply inventory from partnering dispensaries, allowing consumers an intuitive way to navigate finding the product they want. Cannalift’s buildout is ahead of schedule and is projected to be completed with initial sales and partnerships by the end of Q2 2020.
- Provides platform for planned delivery and distribution where allowed in North America
- May be initially leveraged in Saskatchewan and Manitoba as home deliveries are permitted as well as in California where Halo operates
- Acquisition paid fully in shares to preserve Halo’s cash position
- Concurrent private placement of C$700,000 at C$0.11 per share (“Concurrent Financing”)
The acquisition is expected to be completed through a three-cornered amalgamation whereby Halo will acquire 100% of Cannalift Delivery Inc.’s outstanding common shares from its shareholders in exchange for 31,000,000 of common shares of Halo at C$0.11 per share. The Agreement requires the existing developers to work with the Company to develop the application and provide for a smooth transition. The common shares issued by Halo in conjunction with the Acquisition will be subject to a pooling agreement with volume restrictions.
Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows and extracts and processes quality cannabis flower, oils, and concentrates and has sold over 5 million grams of oils and concentrates since inception. Additionally, Halo has continued to evolve its business through delivering value with its products and now via verticalization in key markets in the United States and Africa with planned expansion into European and Canadian markets.
Recently, Halo entered into binding agreements to acquire a dispensary in Los Angeles, 3 KushBar branded dispensaries, 5 development permits in Alberta Canada, and Canmart Limited which holds wholesale distribution and special licenses allowing the import and distribution of cannabis based products for medicinal use (CBPM’s) in the United Kingdom.