Halo Collective Purchases Three KushBar Stores From High Tide For $5.7 Million
Halo Collective Inc. (NEO: HALO) announced today that it has completed the purchase of three operating KushBar retail cannabis stores in Alberta from High Tide Inc. (TSXV: HITI). The acquisition was made through the company’s subsidiary Halo Kushbar Retail.
The transaction was considered for an aggregate gross amount of $5.7 million. Halo Collective partly paid the amount in 2020 via an initial issuance 13,461,538 common shares at $0.26 per share for total proceeds of $3.5 million. The company then issued a $1.8 million convertible promissory note carrying a conversion rate of $0.16 per Halo Collective share upon the closing of the transaction.
Halo Collective will also issue another convertible promissory note at the same conversion rate for the remaining $0.4 million upon meeting revenue requirements. This amount, called the earnout note, will decrease should the revenue produced by the purchased Kushbar stores be less than the agreed threshold.
The two companies also entered into a retail agreement that gives High Tide the right to oversee the operations of the purchased Kushbar stores. Halo Collective will pay High Tide for these advisory and retail management services through monthly blended payments.
This move marks Halo Collective’s first entry into the Canadian market. The company currently has operations in the United States, the Kingdom of Lesotho, and the United Kingdom. In June 2021, Halo Collective announced that it will be realigning its assets outside the US to form African cannabis firm Akanda.
Halo Collective last traded at $0.04 on the NEO while High Tide last traded at $8.55 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.