Halo announces purchase of California cannabis company

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The consolidation within the cannabis space is going to be even greater in 2020

Halo Labs Inc. has just announced an acquisition agreement from two different origins. This combined deal is reported to be for a total of $11.5 million as Halo entered two different letters of agreement for a North Hollywood dispensary applicant, in which Halo seeks controlling interest, and a second for a 100% interest in a retail management company, including a leasehold. These acquisitions will be paid following the completion of different previously set milestones by using Halo’s common shares. The intention is to take further steps to a “seed to sale” model, as well as vertical integration in California.

LKJ11 LLC is going to be a dispensary in North Hollywood, and will feature 4,000 square feet with local parking and a convenient location at Lankershim Blvd. and Hesby Ave. This deal has the potential to build a delivery service for Studio City, North Hollywood. By using Halo’s stock, the acquisition will be paid once the milestones are completed. This purchase is meant to preserve Halo’s cash position and that will enhance the growth plans for the company across the state.

Halo will also acquire Crimson Black, a retail management company. Crimson Black will then take over the operations at the new dispensary, which will offer Halo’s own branded and white-labeled products.

“With the planned acquisition of LKJ and Crimson & Black, Halo will accomplish an important step in its ‘Seed to Sale’ vertical integration strategy. Once the NOLA dispensary is licensed and operational, California will mark the first sales territory in which Halo achieves this goal. Our aim is to adopt this same commercial approach in other regions, across North America and internationally,” said Kiran Sidhu, CEO and co-founder of Halo.