TORONTO, Sept. 22, 2022 Halo Collective Inc. today announced, further to its press release dated August 27, 2021, that it 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 LLC, Bradford Two LLC, and Bradford Three LLC through its wholly-owned subsidiary ANM Inc. The consideration payable by Halo in connection with the acquisition was US$4.0 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 LLC, 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.”
Continued Ms. Field, “We are methodically pursuing the Oregon market with arguably the most competitive product offering in the state — that just got even better. We are producing premium indoor flower that dispensaries and consumers are increasingly demanding, cultivated from over 30 unique genetics strains, including our popular Vino and Roasted Garlic Margie variations, which garner higher price points. We are focusing on Halo grown indoor and outdoor flower, which allows us to capture more economic value and ensure quality of our supply chain. And, we will now have efficient distribution directly from Portland, allowing us to serve 70% of the state market with a 48-hour delivery window. All of this is expected to enable the Company to expand into new doors and drive growth for Halo.”
Concluded Ms. Field, “Halo is dedicated to solidifying its strong and longstanding connection with Oregon consumers. We have a leading sales force in the state and the team is now equipped with a full suite of cannabis products that address a lion’s share of consumer demand. With a renewed localized approach, we see tremendous opportunity are looking forward to building on this commitment as we execute our strategy in the state.”
Jesse Garner, Managing Sales Director of Oregon, added, “With this acquisition, Halo is poised to show retail customers that we are more than just a budget brand in Oregon. We are producing high-quality, niche strains, and stores with whom we have not previously worked are now taking on our products. The quicker turnaround on deliveries coming from Portland also allows us to better service our customers. I started in the cannabis space as a grower in 2012. In 2016, I started Cannassuer distribution and was able to build distribution for a number of brands throughout the state of Oregon. Two of those brands I helped take public. As a co-founder of Halo, I am excited at the opportunity to re-establish Halo’s brands in the Oregon marketplace. There is only room to grow with management’s ‘boots on the ground’ mentality, a dedicated sales team, and a turnkey competitive menu that is second to none.”
(This information is primarily sourced from Halo Collective Inc. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).