Halo Delays Deal For North Hollywood Dispensary

Halo Labs Inc. HALO AGEEF is postponing a California dispensary deal, blaming the coronavirus outbreak for delaying the acquisition.

The Toronto-based cannabis company said Tuesday it has extended the deadline for closing its North Hollywood purchase from the initial date of March 31 to May 31. The $11 million acquisition was previously announced in January.

The deal includes a 66.67% interest in the North Hollywood dispensary, a 100% interest in retail management company Crimson & Black and a controlling interest in a dispensary applicant, LKJ11 LLC.

TLKJ11 is expected to obtain its license soon now that the audit of the Los Angeles Department of Cannabis Regulations application and licensing process is finalized with satisfying results, the company said.

With almost 4,000-square-feet and a vast parking space, the build-out is projected to be one of North Hollywood’s biggest retail dispensaries. Once the dispensary is opened, Halo is expected to start direct sales of its own branded and white-labeled cannabis products.

“We are pleased with the outcome of the DCR audit report and believe this paves the way for the City of Los Angeles to allow the initial dispensary license recipients to build out and open as soon as possible,” Katharyn Field, President of Halo Labs, said in a statement.

Halo anticipates opening the North Hollywood dispensary by the end of June and launching home delivery in the surrounding area.

"Above all, Halo will implement appropriate measures to ensure that retail operations are mindful of any guidelines still recommended by state and local governments, as well as the CDC, to protect both customers and employees from COVID-19," Field added.

Halo Labs’ shares closed Monday’s market session 8.33% lower at 11 cents per share.

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Photo courtesy of Halo Labs.