Halo Collective has completed the acquisition of all of the substantial assets of three operating entities doing business as Pistil Point in Oregon which collectively hold multiple cannabis licenses.
With this transaction, Halo now has full ownership of a range of indoor and outdoor cultivation, manufacturing, and distributions assets, along with an expanded library of genetics that is expected to allow the company to continue to execute its vertically integrated strategy in Oregon with enhanced competitiveness and economics as it penetrates additional retail dispensaries in the state.
Pursuant to the acquisition, Halo has purchased all of the substantial assets of Decatur One, Bradford Two, and Bradford Three through its wholly-owned subsidiary ANM. The consideration payable by Halo in connection with the acquisition was US$4 million, payable in 47,224 common shares in the capital of Halo. The common shares issued are subject to a hold period expiring on the date that is four (4) months and one day from the date of issuance. In connection with the acquisition, the parties have waived the requirement to hold US$2.0 million worth of common shares in escrow for potential indemnification claims and the achievement of specified milestones.
This transaction follows the acquisition of Food Concepts, the master tenant of the approximately 55,000 square feet indoor cannabis cultivation, processing, and wholesaling facility in Portland, Oregon, in 2021, where the businesses operate.
"The acquisition of the Pistil Point operating assets is a key milestone for our home market of Oregon," said CEO and Chairman Katie Field. "With increased ownership of our supply chain, we are better able to meet consumer demand for high quality products while also delivering improved economics for the business. We are confident that consummating this acquisition strengthens our Company and helps us achieve our overall goal of rebuilding shareholder value."