Halo Collective Inc. (NEO: HALO) (OTCQX: HCANF) (Germany: A9KN) has bought three separate cannabis operations in Oregon and expanded its presence in the United States.
On Thursday, the cannabis producer announced the closure of the purchase agreement involving Decatur One LLC, Bradford Two LLC and Bradford Three LLC through its wholly-owned subsidiary ANM Inc. The three operating entities do business as Pistil Point and function as indoor and outdoor cultivation, manufacturing, and distribution facilities.
Under the agreement, Halo paid 47,224 common shares totalling US$4 million to obtain the facilities. All the companies involved have waived the requirement to hold US$2.0 million worth of common shares in escrow for potential indemnification claims and the achievement of specified milestones.
In 2021, the company acquired Food Concepts LLC, which owns a large 55,000 square feet of indoor cannabis cultivation, processing and wholesaling facility in Portland.
Halo has acquired and integrated a variety of companies that were 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 sublingual dosing technology, Accudab.
The company produces around 30 cultivars including Vino and Roasted Garlic Margie.
“We are confident that consummating this acquisition strengthens our Company and helps us achieve our overall goal of rebuilding shareholder value,” CEO Katie Field said.
“We are methodically pursuing the Oregon market with arguably the most competitive product offering in the state — that just got even better.”
She said the company is focusing on Halo-grown indoor and outdoor flower which allows for more economic value and ensures quality in the supply chain.
And, we will now have efficient distribution directly from Portland, allowing us to serve 70 per cent of the state market with a 48-hour delivery window. All of this is expected to enable the company to expand into new doors and drive growth for Halo,” Field added.
Managing sales director of Oregon Jesse Garner said that with the acquisition, Halo wants to show its customers it is more than just a “budget brand” in Oregon
“We are producing high-quality, niche strains, and stores with whom we have not previously worked are now taking on our products. The quicker turnaround on deliveries coming from Portland also allows us to better service our customers,” Garner said.
“There is only room to grow with management’s ‘boots on the ground’ mentality, a dedicated sales team, and a turnkey competitive menu that is second to none.”