Halo Collective Inc. (NEO: HALO) this morning announced that it has entered into definitive agreements to acquire Food Concepts, which operates the 55,000-square foot cannabis facility under the Pistil Point name. The transaction also includes the acquisition of Pistil Point’s licenses issued by the Oregon Liquor Control Commission and related operating assets within the state.
The whole arrangement is reported to be for a total consideration of $12.2 million. The acquisition of Food Concepts is pegged at $8.2 million, payable in 258,156,500 Halo Collective common shares, while the purchase of the related Oregon licenses and assets is valued at $4.0 million, payable in 125,930,000 common shares.
The company relayed that Pistil Point reported approximately $889,000 in revenue and $255,000 EBITDA for the quarter ending June 30, 2021. It also has three entities doing business under its name: Decatur One, Bradford Two, and Bradford Three.
The Food Concepts acquisition is expected to close within the week while the purchase of Pistil Point licenses and assets is expected to close in early 2022, subject to the approval of the state’s regulatory commission. Ar transaction’s closing, Halo Collective’s subsidiary ANM Inc. will own 100% of Food Concepts and Pistil Point’s Oregon licenses and operating assets, but not the Pistil Point brand name.
The announcement comes a month after the cannabis firm announced its intent to acquire the Oregon-based William’s Wonder Farms for $3.8 million.
Halo Collective last traded at $0.04 on the NEO.
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.