AGEEF - Halo Acquires Cannafeels In $6.5 Million All Stock Deal
Halo Labs Inc. (OTCQX: AGEEF) is acquiring 1265292 B.C. Ltd., otherwise known as Cannafeels, in exchange for common shares of Halo . The deal is valued at $6.5 million and is expected to close on or about October 15. Cannafeels is a software company developing an online application to provide consumers with relevant, web-sourced, and curated information about cannabis strains. The App is currently being developed for both the North American recreational market, as well as the UK and select EU medical cannabis markets.
Halo said it plans to use the App to feature content that can support patients and consumers as they research cannabis strains on their computers, tablets, and smartphones. Through the App, 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 the beneficial psychological and bodily effects that recreational users may seek.
Andreas Met, Halo’s Co-Founder and COO said, “Halo looks forward to supplying select European cannabis markets, beginning in Malta and the UK. With our Bophelo operation in Lesotho, we expect to meet the demand from those patients looking to obtain medicine on the private market, and those waiting to receive it from the National Health Service in the UK. Educating patients through Cannafeels, we can supplement the knowledge of medical specialists, demystifying the plant.”
The company said it expects that the completed App versions for the UK and select EU medical markets will include specific strain recommendations for different ailments, such as chronic pain, nausea, anxiety/depression, sleeplessness, or other medical conditions, and information about product preparations, such as plant materials, oils, tinctures, edibles, and capsules, as well as suggested dosing.
Halo intends to include a Cannafeels customized QR code on all of its products, that consumers and patients can scan by the second quarter of 2021. The Cannafeels QR code will direct them to the App, where they may find more relevant information about the product. The App is expected to become a source of competitive advantage from an informational standpoint, solidifying consumer loyalty to Halo brands, and increasing sell-through.
Cannafeels and Halo both anticipate that the App will be used more for flower, pre-rolls and cannabis-derived concentrates, that are strain-specific and require more consumer and patient information than is commonly available. Halo will acquire all the equipment Cannafeels has procured and customized. This equipment cost Cannafeels approximately $1 million and will be deployed by Halo in Oregon and California.
Cannafeels Founder and CEO, Andy Chus said, “We invested in this state-of-the-art, capacity-building machinery because we anticipated that as consumers and patients adopted the App, they would purchase more flower and pre-rolls—particularly strains recommended by the App. The machinery will help Halo meet this new demand for its wide range of flower-based products—including those that will be featured on the App, such as the flower currently being harvested in Oregon, under license from OG DNA Genetics and zSkittlez.”