Halo Collective Acquires Huge Indoor Grow Facility In OR, Will Open More Cannabis Dispensaries Soon

Halo Collective Inc. HALO HCANF said Monday that it has closed a previously announced acquisition of Food Concepts LLC, the master tenant of a roughly 55,000 square foot indoor cannabis cultivation, processing and wholesale facility based in Portland, Oregon.

Under the deal, the facility, which operated under the Pistil Point name by Food Concepts LLC, was purchased by Halo's wholly-owned subsidiary ANM Inc., for $8.2 million, payable in 258.2 million shares of Halo.

The Toronto-based company also announced it had begun constructing a new store in Westwood, Los Angeles – first of three planned dispensaries for Southern California.

The new retail location is poised to begin cannabis sales in the fourth quarter of 2021, Halo said recently.

Located on Santa Monica Blvd, the dispensary is in the vicinity of the University of Los Angeles California campus and Century City.

In addition, the company expects to open ten dispensaries by the end of 2022.

"Halo is committed to entering the large and growing Southern California retail market and is proud that our first operating dispensary will be the closest dispensary to Century City and the tourist sections of Beverly Hills," said Kiran Sidhu, CEO and co-founder of Halo Collective. "We are simultaneously developing two other locations in Hollywood and North Hollywood, that are both ideally situated, which we expect to open later this year or early next."

Management Shake-Ups Amid Halo's International Reorganization To Create Akanda

In the meantime, the company made some management changes recently in relation to the previously announced reorganization of its international assets to create Akanda Corp.

Following the finalization of restructuring, Akanda will operate as an international medical cannabis company, with a portfolio that will include Bophelo BioScience & Wellness Pty. Ltd., Halo's cultivation and processing campus in the Kingdom of Lesotho in Southern Africa, as well as Halo's UK-based fully approved pharmaceutical importer and distributor.

Akanda's board currently has four members, out of seven, including Louisa Mojela, Tej Virk, Charles Kie, and Philip van den Berg. Halo's board will consist of seven members, once the reorganization is completed, including Kiran Sidhu, Katie Field, and Philip van den Berg as non-independent directors as well as Peter McRae, Andrew Turman, Anmol Sidhu, and Ryan Kunkel, who will serve as independent directors.

Price Action

Halo Collective's shares traded 2.65% lower at $0.0330 per share after market close on Monday.

Photo: Courtesy of Halo Collective Inc.