- Cannabis company, Halo Labs Inc (NEO:HALO) has extended its planned acquisition Canmart Limited, due to disruptions caused by COVID-19
- The original letter of intent, signed by both companies, has been extended a further 60 days, to June 21, 2020
- The extension will allow the companies extra time to negotiate terms remotely
- Originally announced last December, Halo plans to purchase all of the common shares in Canmart Limited in a share-exchange deal valued at C$6 million,
- Halo Labs Inc (NEO:HALO) is holding steady, with shares trading for $0.12 and a market cap of $52.2 million
Cannabis company, Halo Labs Inc (NEO:HALO) has extended its planned acquisition of Canmart Limited, due to disruptions caused by COVID-19.
Canmart Limited is a UK-based importer and distributor of medical cannabis products.
With shelter-in-place and travel restrictions throughout the UK and Canada, the extension will allow both companies extra time to negotiate terms remotely.
Through the deal, Halo will purchase all common shares in Canmart Limited, in exchange for Halo shares, valued at C$0.35 each.
The buyout was initially announced in December of last year and is valued at approximately C$6 million, pending final terms.
A binding letter of intent, signed by both companies, has been extended a further 60 days to June 21, 2020.
Kiran Sidhu, CEO and Co-Founder of Halo Labs, believes the extension is necessary to correctly negotiate and execute a deal between the two companies.
“While we are devastated at the toll that COVID-19 is taking on the world, we have continued to work hard at Halo on executing business objectives.
“Moving forward with the extension of the LOI will continue to provide Canmart and Halo sufficient time during this global crisis to properly finalise the transaction. Expanding Halo’s operations into the UK and increasing presence in new countries remains at the forefront of Halo’s growth strategy,” he said.
In acquiring Canmart, Halo labs hopes to accelerate its expansion into the UK, which it sees as a growing cannabis market.
Medical cannabis was legalised in the UK in November 2018 and the industry now provides 1.4 million UK residents with medical cannabis products.
Halo labs believes these numbers will increase as medical guidelines and regulations surrounding cannabis prescriptions in the UK continue to develop.
Halo Labs Inc (NEO:HALO) is holding steady, with shares trading for $0.12 at 1:15pm EST.