Halo Labs Agrees to $12 Million Purchase of KushBar Retail Cannabis Business and 5 Permitted Store Locations in Alberta, Canada
Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) ), is pleased to announce that it has entered into an asset purchase agreement (the “Agreement”) with High Tide Inc. (“High Tide”) (CSE: HITI) (OTCQB:HITIF) (FRA:2LY) and affiliates thereof for the $12 million purchase of High Tides’ KushBar retail cannabis brand, retail cannabis stores and all associated assets (the “Transaction”).
The Transaction provides for the acquisition by Halo of 3 licensed cannabis retail stores1 and the rights to 5 locations across Alberta which have already received development permits (the “Portfolio”) for aggregate consideration of $12 million, payable in common shares of Halo ( “Halo Shares”) at a deemed price of $0.26 per Halo Share. Concurrent with signing the Agreement, Halo has issued 13,461,538 Halo Shares to High Tide (the “Deposit Shares”) as a deposit to secure the Transaction (such deposit being refundable in certain limited circumstances, including force majeure). In connection with entering into the Agreement, Halo has issued an aggregate of 2,307,692 Halo Shares as a finder fee to certain arm’s-length consultants of the Company.
- Proposed $12 million acquisition by Halo of the KushBar retail cannabis brand, which includes:
- 3 licensed retail cannabis stores, 2 are currently operating and 1 is expected to open within 45 days (the “Licensed Premises”)
- 5 development permits to build new cannabis retail stores in Calgary, Edmonton, Edson, and Fort McMurray (the “Development Premises”)
- All copyrights, trade marks, digital assets and rights to all KushBar intellectual property
- Deposit of $3.5 million, paid to High Tide through the issue of 13,461,538 Halo Shares
- The Transaction is expected to provide Halo with entry into the growing Canadian cannabis market
- Under cannabis 2.0, the Canadian market poised to grow from $1.5B to over $3B in 2020 according to Canaccord Genuity2
- The Transaction is subject to the review and approval of the Alberta, Gaming, Liquor, and Cannabis Commission (“AGLC”) and the satisfaction or waiver of other customary conditions and is expected to close within 150 days of this announcement
Expanding High Tide and Halo’s Strategic Partnership