Halo Announces Termination of Previously Announced Letter of Intent with PhytoCann

Provides an update on KushBar

TORONTO, July 26, 2022 /CNW/ – Halo Collective Inc. (“Halo” or the “Company”) (NEO: HALO) (OTCQX: HCANF) (Germany: A9KN) today announced the expiration of the letter of intent previously announced by Halo to acquire PhytoCann Holdings SA (“Phytocann”) pursuant to the terms thereof. The company cited market conditions as a determining factor in not proceeding with the proposed acquisition.

www.haloco.com (CNW Group/Halo Collective Inc.)

M/s. Katie FieldCEO and Director of Halo, said, “I have worked in the legal cannabis industry in the United States for nearly a decade and frankly, I have never seen market conditions as difficult as what we know today. Together with the board, I have therefore decided to focus on the main assets of Halo, including California and Oregon. We simplify and strengthen to increase shareholder value. Even under the best of conditions, running an international business from our core product line presents complexities. We wish the management of Phytocann well and look forward to their continued success. »

Ms. Field continued, “As the new CEO, I have significantly reduced overhead and plan to continue streamlining expenses to make Halo’s core business profitable. Additionally, I have opted for a local and tactical approach to sales and marketing which we plan to improve. speed to market and connections with our consumers in California and Oregon. We focus on the Hollywood opening stores and improving inventory levels across the business. We expect to provide a full trade update in the coming weeks.”

Update on Halo Kushbar

Under an amended and restated asset purchase agreement dated September 1, 2020 (the “APA”), Halo Kushbar Retail Inc. (“Kushbar”), a wholly owned subsidiary of Halo, has purchased three cannabis stores from alberta (the “Stores”) of High Tide Inc. (“High Tide”) on July 15, 2021. The purchase price for the Stores was paid by Halo, on behalf of Kushbar, through the issuance to High Tide of shares in the capital of Halo and a convertible promissory note (the “Note”). The indebtedness due under the note was secured, among other things, by a pledge of shares of Halo in respect of the shares it held in Kushbar (the “Share Pledge”).

Due to a dispute between Halo and High Tide regarding certain store payments, Halo has failed to perform certain of its obligations under the APP. In determining that it would default on some of its obligations, Halo considered a variety of factors, including (1) the stores not generating the revenue or profit that Halo expected them to, (2 ) High Tide’s only remedy under the note was to enforce the sharing covenant, and (3) Halo’s desire to focus on its cannabis operations on the West Coast of the United States. As a result, Halo enabled High Tide to enforce the sharing pledge and take control of Kushbar and the stores. Because High Tide has enforced the Share Promise and now controls the stores, Halo no longer has any obligations or liabilities under the rating or APA.

About Halo Collective
Halo is a multinational incubator with assets and operations focused on the THC and non-THC sectors. For the THC sector, Halo focuses on the west coast of United States, where it operates vertically integrated businesses spanning the entire value chain, from seed to sale. Halo cultivates, extracts, manufactures and distributes quality cannabis flowers, pre-rolls, vape carts, edibles and concentrates. Halo sells these products under a portfolio of brands such as Hush™, Winberry Farms™, Williams Wonder Farms, its Budega™ retail brand, and through licensing agreements with Papa’s Herb®, DNA Genetics and FlowerShop*. Halo opened a dispensary in Los Angeles under the Budega™ brand in North Hollywood and plans to open two more in Hollywoodand Westwood in the second quarter of 2022.

In the non-THC sector, Halo is expanding into health and wellness categories, including CBD and functional supplements such as nootropic nutraceuticals and non-psychotropic mushrooms. Halo, through a series of acquisitions, offers product offerings in beverages (H2C Beverages), dissolvable strips (Dissolve Medical), capsules (Hushrooms™) and topical supplements (Hatshe) with proposed national distribution through a strategic agreement with SWAY Energy Company.

As an incubator, Halo successfully acquired and integrated various companies which were later reorganized to create Akanda Corp. (NASDAQ: AKAN), an international medical cannabis and wellness company, of which Halo currently owns approximately 40% of the common stock. Halo has also acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels and discreet sublingual dosing technology, Accudab. Halo intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc., and to effect a distribution of Halo Tek Inc. stock to registered shareholders, on a date to be determined.

For more information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.

Connect with Halo Collective: E-mail | Website | LinkedIn | Twitter | instagram

Caution Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act. . of 1995. Such forward-looking information and forward-looking statements are not indicative of historical facts or information or of current condition, but represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain. and out of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “anticipates”, “expects” or “does not expect”, “is expected”, ” budget”, “planned”, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or may contain statements that certain actions, events or results “may”, “could”, “would”, “could” or “will be taken”, “will continue”, “will occur” or “will be realized”. Forward-looking information may relate to anticipated events or results, including, but not limited to, management’s plans for its cannabis portfolio and other activities.

By identifying such information and statements in this manner, Halo cautions the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied. understood by this information. and statements. Additionally, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurances or warranties can be made. given that these forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Among others, key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements include the following: management’s inability to successfully integrate the businesses of acquired businesses, changes in the consumer market for cannabis products, changes in expected outcomes of proposed changes to Halo’s operations, delays in obtaining licenses or approvals required for the construction of cannabis operations, dispensaries or Canadian operations of the company, the proposed spin-off with Halo Tek Inc., delays or unforeseen costs incurred in connection with construction, the ability of competitors to expand operations in Northern California, unforeseen delays or difficulties in cultivating and harvesting Halo Raw Material, changes in general economic, business and political conditions, including changes in financial markets; and other risks disclosed in the Company’s Annual Information Form dated March 31, 2022 and other disclosure documents available on the Company’s profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying any forward-looking information or statements prove incorrect, actual results may differ materially from those described herein as anticipated, planned, anticipated, believed, estimated or expected.

The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf are expressly qualified in their entirety by this notice.

Non-solicitation

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, and there will be no sale of such securities in any state or jurisdiction in which a such offer, solicitation or sale would be unlawful. prior to registration or qualification under the securities laws of any such state or territory.

www.haloco.com/investors

SOURCE Halo Collective Inc.

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