Halo Announces Closing of Los Angeles Dispensary Project Acquisition & Passage of Los Angeles Ordinance to Accelerate Approval of Winning Applicants

Nachrichtenquelle: Business Wire (engl.)
06.07.2020, 06:28  |  1325   |   |   

Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that, further to its press releases dated January 16, March 2, 2020, March 6, 2020, and March 31, 2020 it has closed the following acquisitions:

  • a 66 2/3% controlling membership interest in LKJ11 LLC (“LKJ”) a winning Los Angeles dispensary applicant; and
  • 100% of the outstanding membership interest in LKJ11’s retail management company Crimson & Black LLC (“C&B”).

Furthermore on Wednesday July 1, 2020 the Los Angeles City Council adopted an urgency ordinance which requires the DCR to implement a streamlined approval process for the winning applicants to obtain authorization to operate. The Mayor has until July 13, 2020 to sign, following which the ordinance will become effective1.

Transaction Highlights

LKJ11 Acquisition

On July 6, 2020, Halo acquired a company holding a 66 2/3% interest in LKJ11 in exchange for 42,881,646 Halo common shares (“Halo Shares”) at a deemed price of USD$0.2332 (CAD$0.31282) per Halo Share, which represents USD$10 million (CAD$13,415,0002) of the total USD$11.5 million (CAD$15,427,2502) acquisition price for both LKJ11 and C&B as previously announced. To effectuate the LKJ11 transaction, the majority member of LKJ11 merged with and into Halo’s MFT11 Merger Sub, Inc. and the majority member remains the surviving entity and will be wholly-owned by PSG Coastal Holdings LLC (“PSG”), an indirect wholly-owned subsidiary of Halo. The Halo Shares will be issued as follows:

  1. Upon closing, Halo issued approximately 8,576,329 Halo common shares to the vendors as follows:
    1. 4,288,165 Halo Shares are freely tradeable in accordance with applicable securities laws; and
    2. 4,288,164 Halo Shares are subject to a pooling agreement with trading restrictions whereby, for one year following their issuance, the aggregate shares sold on or through any stock exchange may not exceed: (a) 10% of the prior trading day’s total volume if the closing price of the Halo Shares is less than CAD$0.30 (USD $0.222); or (b) 15% of the prior trading day’s total volume if the closing price of the Halo Shares is greater than or equal to CAD$0.30 (USD $0.222).
  2. 34,305,317 Halo Shares will be issued to the vendors, subject to a pooling agreement with trading restrictions whereby, for one year following their issuance, the aggregate shares sold on or through any stock exchange may not exceed: (a) 10% of the prior trading day’s total volume if the closing price of the Halo Shares is less than CAD$0.30 (USD $0.222); or (b) 15% of the prior trading day’s total volume if the closing price of the Halo Shares is greater than or equal to CAD$0.30 (USD $0.222), as well as certain reduction or cancellation rights, when the following performance milestones are achieved:
    1. 17,152,659 Halo Shares will be issued when LKJ11 is licensed by all applicable state and local regulatory agencies and the first legal sale of cannabis is made; and
    2. 17,152,658 Halo Shares will be issued when LKJ11 is granted a lease extension for an aggregate of five years or a new location lease for a term of 5 years from the closing date.

C&B Acquisition

Seite 1 von 6
Halo Labs Aktie jetzt ab 0€ handeln - auf Smartbroker.de



Diesen Artikel teilen

Diskussion: Cannabis ? Jetzt aber Halo !
Wertpapier



0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Meistgelesene Nachrichten des Autors

Titel
Titel
Titel
Titel