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Halo declares buyout of North Hollywood cannabis dispensary applicant

Halo declares buyout of North Hollywood cannabis dispensary applicant
Halo declares buyout of North Hollywood cannabis dispensary applicant
  • This potential acquisition of LKJ11 LLC is expected to bolster Halo’s statewide high-growth plan and add significant revenue margin for the company.
  • The acquisition is valued for USD 11.5 million.

Halo labs, Incorporation, a US based cannabis extraction company, recently announced the acquisition of a North Hollywood (NOHO) cannabis dispensary licensee, LKJ, for an overall remuneration of USD 11.5 million. Apparently, this acquisition would strengthen Halo’s global high growth plan.

It has been reported that the acquisition would be paid with common shares of Halo, a major part of which are issuable on the conclusion of the pre-decided performance accomplishments. Moreover, approximately 43,000,000 shares with an estimated value of nearly USD 3.2 million for a 66 2/3 per cent interest in LKJ transactions would also be made.

As per reliable sources, the LKJ dispensary would showcase over four thousand square feet sizeable onsite parking, and a prime location at northwest corner of Hesby Ave and Lankershim Blvd. The transaction also allows potential to build a delivery service for North Hollywood, Hollywood Burbank, Studio City, and Eastern San Fernando Valley, while preserving Halo’s cash position globally along with adding a high margin revenue stream to the company’s range.

Speculations have it that NOHO’s dispensary launch would promote Halo to begin immediate retail sales of its own branded and white-labeled cannabis items, thereby driving HKJ’s sales and minimizing the opening inventory costs. This indeed, would enable Halo to leverage manufacturing in South California and manufacturing, and distribution operations in Northern California to escalate its direct to dispensary business.

Commenting on the acquisition, the CEO and Co-Founder of Halo, Kiran Sidhu said, the acquisition of LKJ11 LLC is a positive step for the company’s bright future allowing it to enter the California dispensary market and eventually adding to Halo’s portfolio of distribution and manufacturing assets. Through this, the company plans to replicate California operations in other different territories as the company progresses towards vertical development.

Meanwhile, the Chief Marketing Officer at LKJ, Dave Cho cited that the team is delighted to have joined forces with Halo Labs in order to run a leading dispensary in the states of Los Angeles. The company is positive about the skill and expertise of Halo which would allow it to carve a niche in the cannabis market across the region.

Source credit: https://finance.yahoo.com/news/halo-announces-signing-definitive-agreement-142300645.html

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Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.