TORONTO: Halo Collective Inc. (Halo or the Company) (NEO: HALO) (OTCQX: HCANF) (Germany: A9KN) announced a plan to pursue a spin-off (the Transaction) of certain of its software, device and intellectual property assets (the Tek Assets) into a standalone company to be named Halo Tek Inc. (Halo Tek).
In connection with the Transaction, Halo has entered into a subscription agreement with an arms-length investor who has committed to purchase shares of Halo Tek for an aggregate purchase price of $1 million and at a pre-financing valuation of Halo Tek of $32 million (the Private Placement). Halo Tek anticipates using the proceeds from the Private Placement to develop and commercially launch the software, finalize the designs of the devices, and perfect patent applications in respect of the Tek Assets.
The Halo Tek Assets
Halo Tek will take ownership of all the assets and intellectual property associated with the following existing subsidiaries of Halo
Halo Dispensary Track Software Inc., a subsidiary of Halo, acquired Cannpos Services Corp. (Cannpos), a software company that is developing an application to alleviate customer flow constraints currently experienced by dispensaries. Subject to state and local regulations, once fully functional, the application is expected to enable customers to electronically interact with dispensaries, thereby reducing wait times and improving customer experience. Dispensaries may also use the application to display in-store specials, advertise specific products, and track customers' purchasing patterns. The application's tracking capabilities will enable dispensaries to gather business intelligence on end customers in compliance with privacy laws. The application is being designed to be used on a smartphone or tablet and will be available for private distribution once tested and complete. Halo intends to rebrand the application as DispensaryTrack and offer it to its retail partners for an ongoing monthly service fee.
Halo AccuDab Holdings Inc., a subsidiary of Halo, acquired Precisa Medical Instruments Corp., a medical device company that owns the intellectual property related to and is focused on the development of the Accu-Dab THC and CBD oil oral delivery device. The Accu-Dab takes the form of a discrete pen that will allow users to pre-select various doses of measured THC or CBD from 0.01 mL to 0.60 mL for sublingual oral consumption. The Accu-Dab allows for precise dispensation of THC or CBD products accurately and repeatedly to meet the consumer's specific dosing needs through its convenient dial selection mechanism.
Halo Cannalift Delivery Inc, a subsidiary of Halo, acquired Cannalift Delivery Inc. (Cannalift), a software company that is developing a delivery application to be used on a smartphone or tablet and a web-based platform that, once developed, is expected to provide consumers with a convenient method of obtaining cannabis products from their local dispensaries. Subject to local regulations, the application is also expected to enable customers to electronically interact with dispensaries, thereby reducing wait times and improving customer experience.
Halo Nasalbinoid Natural Devices Corp., a subsidiary of Halo, acquired Nasalbinoid Natural Devices Corp., an ancillary device company that is developing a new innovative delivery device in the form of a nasal inhaler as an alternative to vaping. Various formulations have already been tested and developed.
Halo acquired 1265292 B.C. Ltd. dba Cannafeels (Cannfeels), a software company developing an online application to provide consumers with relevant, web-sourced, and curated information about cannabis strains. The application is expected to feature content that can support patients and consumers as they research cannabis strains on their computers, tablets, and smartphones. Through the application, patients and consumers will be able to access this strain-related content before, during, or after visits to clinics and dispensaries, helping them understand how different strains address a range of health issues, as well as beneficial psychological and bodily effects that recreational users may seek.
Halo acquired 1275111 B.C. Ltd., a company that has developed certain patent-pending intellectual property relating to cannabinoid filtration and purification. The technology filters and purifies the extraction process to result in higher potency levels on a more consistent basis. It has already been implemented at one of Halo's facilities in the first quarter of 2021.
Kiran Sidhu, CEO and Co-Founder of Halo, said, The proposed spin-off of the Company's software, device and intellectual property assets is a potential first step in unlocking greater value for shareholders. These assets can be licensed to multiple cannabis company's worldwide. We anticipate further announcements regarding management and board appointments at Halo Tek in the near future.
Halo expects to provide additional information in respect of the Transaction over the coming months. Completion of the Transaction and Private Placement remains subject to the completion of an internal reorganization, obtaining a receipt for a final prospectus of Halo Tek in respect of the Distribution and certain other conditions, including the receipt of all required regulatory approval. In addition, closing of the Private Placement is conditional upon Halo Tek becoming a reporting issuer in a province of Canada and the shares of Halo Tek being conditionally approved for listing on a recognized North American stock exchange. There can be no certainty that the Transaction or the Private Placement will be completed on the terms described in this press release or at all. (PRN/2 days ago) https://www.newkerala.com/business-world-news.php
