Halo Announces Pricing of Overnight Marketed Offering of Units
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
TORONTO, Jan. 26, 2021 (GLOBE NEWSWIRE) -- Halo Collective Inc. (“Halo” or the “Company”) (NEO: HALO) (OTCQX: AGEEF) (Germany: A9KN), is pleased to announce the pricing of its previously announced overnight marketed offering of an aggregate of 88,906,000 units of the Company (the “Units”) at a price of $0.09 per Unit, for aggregate gross proceeds of $8,001,540 (the “Offering”). Each Unit will be comprised of one common share in the capital of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Share at an exercise price of $0.125 for a period of 30 months from the closing date. Eight Capital is acting as lead underwriter in connection with the Offering, together with a syndicate of underwriters including Canaccord Genuity Corp. and PI Financial Corp. (together, the “Underwriters”). The closing of the Offering will be subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the NEO Exchange Inc.
The Company has granted the Underwriters an option, exercisable in whole or in part, at any time not later than the 30th day following the closing of the Offering, to purchase up to an additional 15% of the Units offered in the proposed Offering for market stabilization purposes and to cover over-allotments, if any.
The net proceeds of the Offering are expected to be used for raw materials and packaging supplies, capital equipment, the build-out of the Company’s proposed dispensary in North Hollywood, California, development of the Bar-X Ranch in Lake County, California and an indoor cultivation facility in Ukiah, California, working capital and general corporate purposes.
The Units will be offered in each of the provinces of Canada, other than Quebec, pursuant to Halo’s short form base shelf prospectus dated September 2, 2020 (the “Base Prospectus”) and may also be offered in the United States or to, or for the account or benefit of, U.S. persons pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended and in compliance with similar exemptions under applicable state securities laws, as well as in jurisdictions outside of Canada and the United States as are agreed to by the Company and the Underwriters on a private placement or equivalent basis. The terms of any Offering will be described in a prospectus supplement to be filed with the securities commissions in each of the provinces and territories of Canada (the “Prospectus Supplement”).