Halo Labs Plans Acquisition Of North Hollywood Dispensary Applicant, Retail Management Company

Halo Labs Inc. HALO AGEEF said Thursday it has signed two letters of intent regarding the planned acquisition of 66.67% interest in a North Hollywood cannabis dispensary applicant and 100% interest in Crimson & Black, a retail management company, and leasehold for a total combined payment of $11.5 million.

Once specific performance milestones are met, Halo said it will pay for the acquisition in the form of its common shares.

For $11.5 million, Halo said it will attain a controlling interest in planned flagship dispensary LKJ11 LLC, with the potential to create a delivery service for Studio City, North Hollywood, Hollywood Burbank and the Eastern San Fernando Valley.  

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The North Hollywood store will consist of 4,000 square feet.

Halo plans to finalize the acquisition during the first quarter of 2020.

 “With the planned acquisition of LKJ and Crimson & Black, Halo will accomplish an important step in its ‘Seed to Sale’ vertical integration strategy,” Kiran Sidhu, Halo's CEO and co-founder, said in a statement.

“Once the NOLA dispensary is licensed and operational, California will mark the first sales territory in which Halo achieves this goal. Our aim is to adopt this same commercial approach in other regions, across North America and internationally.”

Halo shares were trading down 0.15% at $20.10 at the time of publication Friday. 

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