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TORONTO, Feb. 6, 2021 /CNW/ – Halo Collective Inc. (“Halo” or the “Company“) (NEO: HALO) (OTCQX:HCANF) (Germany: A9KN) is delighted to announce the signing of definitive agreements to acquire an interest in two successful Los Angeles dispensary license applicants and 100% ownership of each applicant’s related management company (“the Transaction“), in a strategic move to further the Company’s presence in California’s growing cannabis market.
As Halo continues to implement its seed to sale verticalization strategy, owning and operating retail businesses is a key tactic to increase value by controlling distribution and adding operating margin. As such the signing of definitive agreements to acquire 66 ⅔% of the two Los Angeles dispensary businesses, as well as 100% of their respective management companies marks a significant milestone for the Company. Halo plans to open the flagship stores in Hollywood and Westwood adjacent to Beverly Hills and at least one site will feature the first FlowerShop* branded dispensary.
The Company plans to brand the first applicant SDF11 LLC (“SDF11“), located in Hollywood, FlowerShop*, a cannabis lifestyle and conceptual wellness brand by Feel Better in which G-Eazy is a partner and key member. As previously disclosed, Halo also owns 25% of Feel Better LLC (“Feel Better“). The second dispensary, ZXC11 LLC (“ZXC11“), has leased approximately 1,500 square feet in Westwood within two miles of the University of Los Angeles California campus (“UCLA”). Upon closing the Transaction, the Company plans to deepen its operations through these two storefronts and the Company’s first dispensary acquisition that is already slated to open in the North Hollywood (“NOHO“) village of Los Angeles.
Chief Executive Officer and Co-Founder of Halo, Kiran Sidhu, stated, “Since we partnered with G-Eazy, we actively searched for