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Halo Labs to acquire Cannalift Delivery

Cannabis
04 March 2020 11:28 (EDT)
Halo Labs Inc. - CEO, Kiran Sidhu

Source: Twitter (@ToddShapiroShow)

Halo Labs (NEO:HALO) has entered a definitive agreement to wholly acquire Cannalift Delivery.

Cannalift is currently in the late-stage development of a new mobile delivery platform. Once completed, customers will be able to use the software to order cannabis products directly from local dispensaries.

While Cannalift will not directly offer any cannabis products, the platform will act as a mediator between suppliers and consumers.

Katharyn Field, President of Halo Labs, said that the addition of Cannalift to Halo’s portfolio is an important step in building the company’s North American operations.

“With ongoing supply constraints in North America and the lack of delivery options, being an early operator in a demanding space for direct to consumer delivery will put Halo ahead of the competition.

“With the recently announced planned acquisitions of the KushBar Brand, the NOHO dispensary and intended acquisitions of future retail cannabis locations, Halo will be in a position to deliver high quality cannabis products to consumers both in store and at home,” she added.

Halo Labs will issue 31,000,000 common shares at a price of C$0.11 each to the owners of Cannalift. The total price of the transaction will therefore be valued at $3.41 million.

The platform is initially expected to roll out in select regions with regulatory approval. Saskatchewan and Manitoba are forecast to be at the top of the list, as well as the U.S. state of California.

Cannalift says the development of its platform is ahead of schedule, with initial sales and partnerships set to take place by the second quarter this year.

Halo Labs (HALO) is up 21.9 per cent, with shares currently trading for $0.195 at 11:05am EST.

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