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Halo to Acquire a Cannpos Services for CDN 4.69m in Shares
Wednesday 09 October 2019

9 October 2019 - Canada-based cannabis company Halo Labs Inc. (NEO: HALO) (OTCQX: AGEEF) (Germany: A9KN) has agreed to acquire all of the common shares of Canada-based software company Cannpos Services Corp. for CDN 4.69m (USD 3.52m) in Halo common shares at a deemed price of CDN 0.26 (USD 0.195) per share; and 1.25m performance warrants, the company said.
The acquisition is expected to be completed through a three-cornered amalgamation whereby Halo will acquire 100% of Cannpos' outstanding common shares from its shareholders in exchange for 18,035,714 Halo common shares and 1.25m performance warrants.
As a condition to closing of the acquisition, Halo announced a concurrent non-brokered private placement of Halo common shares at a price of CDN 0.31 (USD 23.2) per share for aggregate gross proceeds of up to CDN 3m (USD 2.25m).
Halo intends to use the proceeds of the Concurrent Financing to complete the development and deployment of DispensaryTrack and continue its expansion efforts in California, including the increase of its direct sales force and product offerings and the growth of its manufacturing capacity in Cathedral City.
Both the acquisition and Concurrent Financing are expected to close on or before October 15, 2019.
Halo is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry.
Halo is a leader in cannabis oil and concentrates, having produced over 4.5m grams of oils and concentrates since inception.
The company is currently operating in California and Oregon, as well as in Nevada with Just Quality, LLC, and in Lesotho with the Bophelo strategic partnership.
Cannpos is a software company that is developing an application to alleviate customer flow constraints currently experienced by dispensaries.
Subject to state and local regulations, once fully functional, the application will enable customers to electronically interact with dispensaries, thereby reducing wait times and improving customer experience.
Date Published: 09/10/2019
Target: Cannpos Services Corp
Country: Canada
Deal Size: 3.52m (USD)
Sector: Computer Software
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Buyer: Halo Labs Inc
Terms of the deal were not disclosed