TORONTO – Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce it has entered into a definitive agreement (the “Agreement”) to obtain all of the typical shares of Cannpos Solutions Corp. (“Cannpos”) for (i) CAD $four.69 million in Halo typical shares at a deemed price tag of CAD $.26 per share and (ii) 1,250,000 efficiency warrants, topic to vesting and workout restrictions, to buy 1,250,000 Halo typical shares (the “Acquisition“).
Cannpos is a computer software business that is building an application to alleviate consumer flow constraints at present knowledgeable by dispensaries. Topic to state and neighborhood regulations, when completely functional, the application will allow consumers to electronically interact with dispensaries, thereby lowering wait occasions and enhancing consumer encounter. Dispensaries will also be capable to use the application to show in-shop specials, promote particular items, and track customers’ getting patterns. The application’s tracking capabilities will allow dispensaries and Halo to collect organization intelligence on finish consumers, in compliance with privacy laws. The application is getting made to be employed on a sensible telephone or tablet and is anticipated to be obtainable on the Apple and Android app retailers when total and tested. Halo intends to rebrand the application as “DispensaryTrack” and provide it to its retail partners for an ongoing month-to-month service charge.
“Securing shelf space is extremely competitive and getting capable to add to Halo’s worth proposition will lead to a stronger bottom line in the extended term,” mentioned Kiran Sidhu, CEO and Co-Founder of Halo. “The Business believes that DispensaryTrack will present its sales force with a exceptional promoting proposition to important dispensary clientele, which in turn must foster longer term relationships.”
The Acquisition is anticipated to be completed via a 3-cornered amalgamation whereby Halo will obtain 100% of Cannpos’ outstanding typical shares from its shareholders in exchange for 18,035,714 Halo typical shares and 1,250,000 efficiency warrants. The efficiency warrants will only vest and turn out to be exercisable when the application has been custom made to meet Halo’s specifications inside 1 year soon after closing of the Acquisition. The Agreement needs the current developers to perform with the Business to create the application and present for a smooth transition. The typical shares issued by Halo in conjunction with the Acquisition will be topic to particular sale restrictions.
Concurrent Non-Brokered Private Placement
As a situation to closing of the Acquisition, Halo is pleased to announce a concurrent non-brokered private placement of Halo typical shares at a price tag of CAD $.31 per share for aggregate gross proceeds of up to CAD $three million (“Concurrent Financing”). Any securities issued in connection with the Concurrent Financing will be topic to a 4 month and 1 day statutory hold period pursuant to applicable securities laws.
Halo intends to use the proceeds of the Concurrent Financing to total the improvement and deployment of DispensaryTrack and continue its expansion efforts in California, such as the boost of its direct sales force and solution offerings and the development of its manufacturing capacity in Cathedral City.
Each the Acquisition and Concurrent Financing are anticipated to close on or prior to October 15, 2019 and are topic to the satisfaction or waiver of customary circumstances, such as the receipt of all applicable regulatory and stock exchange approvals.
Halo is a cannabis extraction business that develops and manufactures good quality cannabis oils and concentrates, which are the quickest increasing segments in the cannabis market. Halo is a worldwide leader in cannabis oil and concentrates, obtaining created more than four.five million grams of oils and concentrates due to the fact inception. The Business has experience across all main cannabis manufacturing processes, leveraging a selection of proprietary processes and items. The forward-pondering business is led by a sturdy management group with deep market information and blue-chip encounter. The Business is at present operating in California and Oregon, as nicely as in Nevada with our companion Just Top quality, LLC, and in Lesotho with the Bophelo strategic partnership. With a customer-centric concentrate, Halo will continue to marketplace revolutionary, branded, and private label items across various solution categories.