Halo to acquire UK-based medical cannabis company Canmart Limited
By Akshay Kedari  Date: 2019-12-26

Halo to acquire UK-based medical cannabis company Canmart Limited

Halo Labs Inc., a cannabis extraction company based in Canada, has reportedly announced that it has signed a new binding LOI (Letter of Intent) to procure all common shares of UK based Canmart Limited.

The proposed deal would be Halo’s first ever planned overseas acquisition of a distributor and importer of licensed medicinal-grade cannabis products.

Overall, the company is looking to partner, procure and apply for national licenses further within Europe as well as other regions. It would give its medical cannabis products direct market access for the region. The products are made from Halo’s 205-hectare cannabis cultivation land located in Mafeteng, Lesotho.

Through Canmart, which has been approved to import cannabis products into the United Kingdom, Halo plans to kickstart imports to the UK by the last two quarters of 2020, based upon regulatory approvals.

The overall Canmart acquisition transaction size is expected to reach C$6 million, which would payable through common shares of Halo as well as at a C$0.35 per share deemed price (the Consideration) based upon 30-day VWAP that started as of December 23, 2019.

The Consideration would be paid as and when Canmart achieves key business milestones. The company’s takeover of Canmart is anticipated to be signed and closed within the coming 75 days.

The closing of the deal is subject to the fulfilment or waiver of any conditions that are precedent to the completion of the transaction, among other things, which also includes the receipt of any stock exchange and requisite regulatory approvals.

Kiran Sidhu, CEO and Co-Founder of Halo stated that the UK is among the world’s biggest individual cannabis markets. Halo’s goal is to establish itself as a prominent player across the UK in coming years.

Sidhu further added that based on the cost and quality of medical cannabis the company is are growing across Lesotho, Canmart takeover would put Halo in a prime position to expand its business prowess as medical treatments conducted using cannabis start to become more commonplace throughout Great Britain.

Founding Director, Canmart, Darran Quinn stated that the UK medical cannabis industry is on the verge of a substantial level of growth. Collaborating with Halo provides the company a significant competitive advantage from both near-term and long-term perspectives.

 

Source credit: https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/halo-enters-into-binding-loi-to-acquire-canmart-limited-uk-licensed-uk-importer-and-distributor-of-medical-cannabis-products

About Author

Akshay Kedari    

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Pecan.ai to automate machine learning with its $11Mn Series A funding
Pecan.ai to automate machine learning with its $11Mn Series A funding
By Akshay Kedari

Pecan.ai has emerged as a prominent firm in the AI landscape, with its innovative analytic platform aiding businesses. Headquartered in Tel Aviv, Israel, the startup intends to build comprehensive machine learning (ML) models for business analysts. ...

Firmenich reveals joint investment in reusable packaging company LOOP
Firmenich reveals joint investment in reusable packaging company LOOP
By Akshay Kedari

Firmenich SA, one of the leading perfume and taste companies in the world, has reportedly announced joint participation with Quadia in reusable packaging pioneer LOOP's Series A equity round. Announced at ACI’s (American Cleaning Institute)...

Huawei to install new 5G base stations to tackle spreading Coronavirus
Huawei to install new 5G base stations to tackle spreading Coronavirus
By Akshay Kedari

Huawei, the renowned Chinese telecommunications equipment and consumer electronics seller, reportedly announced that it would install new 5G base stations in Wuhan city to help tackle the breakout of Coronavirus. The company has already begun work to...

British officials advise limited role to Huawei in U.K. 5G network
British officials advise limited role to Huawei in U.K. 5G network
By Akshay Kedari

British officials have formally granted Huawei a limited role in the future 5G network of the U.K., dismissing the U.S. calls to completely ban Huawei. The U.S. had earlier accused the company of spying on behalf of the Chinese government.  Off...

Boom and Flight Research to bring XB-1 test flights to Mojave Corridor
Boom and Flight Research to bring XB-1 test flights to Mojave Corridor
By Akshay Kedari

Boom Supersonic, a Colorado based startup that is designing the fastest supersonic airliner in history, has reportedly announced a new strategic partnership deal with Flight Research, Inc., a leading provider of training, services and support activit...