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Halo Collective Closes Acquisition of Portland, Oregon Indoor Grow and Distribution Hub
Friday 23 September 2022

Canada-based cannabis company Halo Collective Inc (NEO: HALO) (OTCQX: HCANF) (Germany: A9KN) has completed the acquisition of all of the substantial assets of three operating entities doing business as Pistil Point in Oregon which collectively hold multiple cannabis licenses, the company said.

With this transaction, Halo now has full ownership of a range of indoor and outdoor cultivation, manufacturing, and distributions assets, along with an expanded library of genetics

Halo expects these assets will allow the company to continue to execute its vertically integrated strategy in Oregon with enhanced competitiveness and economics as it penetrates additional retail dispensaries in the state.

Pursuant to the acquisition, Halo has purchased all of the substantial assets of Decatur One LLC, Bradford Two LLC, and Bradford Three LLC through its wholly-owned subsidiary ANM Inc.

The consideration payable by Halo in connection with the acquisition was USD 4m, payable in 47,224 common shares in the capital of Halo.

The common shares issued are subject to a hold period expiring on the date that is four months and one day from the date of issuance.

In connection with the acquisition, the parties have waived the requirement to hold USD 2m worth of common shares in escrow for potential indemnification claims and the achievement of specified milestones.

This transaction follows the acquisition of Food Concepts LLC, the master tenant of the approximately 55,000 square feet indoor cannabis cultivation, processing, and wholesaling facility in Portland, Oregon, in 2021, where the businesses operate.

Halo is focused on the United States West Coast, where it has vertically integrated operations covering the entire value chain from seed to sale.

Halo cultivates, extracts, manufactures, and distributes quality cannabis flower, pre-rolls, vape carts, edibles, and concentrates.

Halo sells these products under a portfolio of brands, including Hush, Winberry Farms, its retail brand Budega, and license agreements with Papa's Herb, DNA Genetics, and FlowerShop.

In addition, Halo has opened two dispensaries in Los Angeles under the Budega brand in North Hollywood and Hollywood, with plans to open one more in Hollywood in 2022.

In the non-THC sector, Halo is expanding into health and wellness categories, including CBD and functional supplements such as nootropic nutraceuticals and non-psychotropic mushrooms.

Halo, through a series of acquisitions, has product offerings in the form of beverages (H2C Beverages), dissolvable strips (Dissolve Medical), capsules (Hushrooms), and topical supplements (Hatshe) with proposed national distribution via a strategic agreement with SWAY Energy Corp.

Halo has acquired and integrated a range of companies which were subsequently reorganized to create Akanda Corp. (NASDAQ: AKAN), an international medical cannabis and wellness company, of which Halo is the largest shareholder.

Halo has also acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab.

Halo said it plans to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc. and to complete the distribution of the shares of Halo Tek Inc. to shareholders on record at a date to be determined.
Date Published: 23/09/2022