Halo Collective Inc. (NEO: HALO) announced on Saturday the firms intentions of acquiring the Oregon-based William’s Wonder Farms through their subsidiary ANM Inc. The acquisition will see total consideration of $3.8 million.
Total consideration is to be satisfied via cash and shares of the company, with the cash portion amounting to $1.0 million, while $1.8 million is to be paid via a non-negotiable promissory note secured by the assets of the company. A total of 25.8 million shares are expected to issued to cover the balance of the transaction. Half of these shares will be secured in an escrow facility, reserved for any claims made against the selling parties.
William’s Wonder saw sales of approximately $2.4 million, and EBITDA of approximately $0.6 million in 2020. Three months into this year, the company’s unaudited results reflect sales of more than $0.8 million, representing a 48% increase from the same period last year. EBITDA recorded during this period was reportedly upwards of $0.3 million.
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The deal is set to increase Halo’s total owned and managed cultivated acreage to 11 acres of outdoor capacity within the State of Oregon, while providing the option for Halo to expand further via the potential for two more Tier 2 managed licenses on the William’s site as needed. Further to this, the acquisition brings Halo an additional six greenhouses, and adds more strains to Halo’s genetic portfolio.
The agreement is expected to conclude sometime in the fourth quarter of 2021.
Halo Collective Inc. last traded on the NEO at $0.04.
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.
