Halo Labs Inc. (OTC: AGEEF)(NEO:HALO) said in January it has signed a letter of intent in connection with its planned acquisition of 66.67% interest in a North Hollywood cannabis dispensary applicant. On Sunday, the cannabis company said it has entered into a definitive agreement to acquire a company with controlling interest in a North Hollywood cannabis dispensary applicant.
Why It Matters
Per the agreement, Halo Labs will pay for the acquisition through the issuance of 42.88 million shares valued around $3.2 million, for a 66 2/3% interest in a planned NOHO flagship dispensary.
The dispensary should cover approximately 4,000 square feet, have an onsight parking area, and it will be located at the northwest corner of Lankershim Blvd. and Hesby Ave, which is considered an attractive location due to it being heavily trafficked.
Furthermore, the dispensary is said to carry the potential to create a delivery service for North Hollywood, Studio City, Eastern San Fernando Valley, and Hollywood Burbank.
“Signing this definitive agreement to acquire LKJ11 LLC is an exciting step for Halo’s future,” Kiran Sidhu, CEO and Co-Founder of Halo, said in a statement. “Entering into the California dispensary market will add to Halo’s portfolio of manufacturing and distribution assets. We expect to replicate California operations in other territories as the Company continues to grow and develop towards verticalization.”
Halo Labs closed Friday’s session 1.35% higher at 8 cents per share.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.