TORONTO – Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce it has entered into a definitive agreement (the “Agreement”) to obtain all of the prevalent shares of Cannpos Solutions Corp. (“Cannpos”) for (i) CAD $four.69 million in Halo prevalent shares at a deemed cost of CAD $.26 per share and (ii) 1,250,000 functionality warrants, topic to vesting and workout restrictions, to acquire 1,250,000 Halo prevalent shares (the “Acquisition“).
Cannpos is a application organization that is creating an application to alleviate client flow constraints at the moment skilled by dispensaries. Topic to state and neighborhood regulations, after totally functional, the application will allow shoppers to electronically interact with dispensaries, thereby lowering wait instances and enhancing client encounter. Dispensaries will also be in a position to use the application to show in-shop specials, promote precise items, and track customers’ getting patterns. The application’s tracking capabilities will allow dispensaries and Halo to collect enterprise intelligence on finish shoppers, in compliance with privacy laws. The application is becoming developed to be utilized on a sensible telephone or tablet and is anticipated to be readily available on the Apple and Android app shops after comprehensive and tested. Halo intends to rebrand the application as “DispensaryTrack” and supply it to its retail partners for an ongoing month-to-month service charge.
“Securing shelf space is extremely competitive and becoming in a position to add to Halo’s worth proposition will lead to a stronger bottom line in the extended term,” mentioned Kiran Sidhu, CEO and Co-Founder of Halo. “The Firm believes that DispensaryTrack will give its sales force with a exceptional promoting proposition to important dispensary customers, which in turn need to foster longer term relationships.”
The Acquisition is anticipated to be completed via a 3-cornered amalgamation whereby Halo will obtain 100% of Cannpos’ outstanding prevalent shares from its shareholders in exchange for 18,035,714 Halo prevalent shares and 1,250,000 functionality warrants. The functionality warrants will only vest and develop into exercisable when the application has been custom developed to meet Halo’s specifications inside 1 year following closing of the Acquisition. The Agreement demands the current developers to function with the Firm to create the application and give for a smooth transition. The prevalent shares issued by Halo in conjunction with the Acquisition will be topic to particular sale restrictions.
Concurrent Non-Brokered Private Placement
As a situation to closing of the Acquisition, Halo is pleased to announce a concurrent non-brokered private placement of Halo prevalent shares at a cost of CAD $.31 per share for aggregate gross proceeds of up to CAD $three million (“Concurrent Financing”). Any securities issued in connection with the Concurrent Financing will be topic to a 4 month and 1 day statutory hold period pursuant to applicable securities laws.
Halo intends to use the proceeds of the Concurrent Financing to comprehensive the improvement and deployment of DispensaryTrack and continue its expansion efforts in California, like the enhance of its direct sales force and solution offerings and the development of its manufacturing capacity in Cathedral City.
Each the Acquisition and Concurrent Financing are anticipated to close on or prior to October 15, 2019 and are topic to the satisfaction or waiver of customary circumstances, like the receipt of all applicable regulatory and stock exchange approvals.
Halo is a cannabis extraction organization that develops and manufactures top quality cannabis oils and concentrates, which are the quickest developing segments in the cannabis business. Halo is a worldwide leader in cannabis oil and concentrates, possessing created more than four.five million grams of oils and concentrates due to the fact inception. The Firm has knowledge across all main cannabis manufacturing processes, leveraging a selection of proprietary processes and items. The forward-considering organization is led by a robust management group with deep business expertise and blue-chip encounter. The Firm is at the moment operating in California and Oregon, as effectively as in Nevada with our companion Just Top quality, LLC, and in Lesotho with the Bophelo strategic partnership. With a customer-centric concentrate, Halo will continue to industry revolutionary, branded, and private label items across several solution categories.