U.S. Markets closed

Halo Acquires Dispensary Software Company Cannpos Services, Announces Private Placement

Nina Zdinjak

Halo Labs Inc. (OTC: AGEEFsaid Monday it has signed an agreement to purchase all common shares of Cannpos Services Corp.

Per the agreement, the company will acquire Cannpos’ shares for CA$4.69 million ($3.5 million) in Halo common shares at a price of CA$0.26 per share and 1.25 million performance warrants for the purchase of 1.25 million Halo common shares.

Cannpos is a software company focused on a more efficient interaction between customers and dispensaries.

Once fully developed, the app will allow dispensaries to promote its products and follow customers’ purchasing patterns, according to Halo. 

The performance warrants are set to vest only, and they will become exercizable once the application has been completed to answer Halo’s requirements in one year upon closing the acquisition.

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

“Securing shelf space is highly competitive and being able to add to Halo’s value proposition will lead to a stronger bottom line in the long term,” Kiran Sidhu, CEO and co-Founder of Halo, said in a statement.

“The company believes that DispensaryTrack will provide its sales force with a unique selling proposition to key dispensary clients, which in turn should foster longer term relationships.”

Additionally, Halo announced a simultaneous non-brokered private placement of its common shares as a condition to closing the acquisition.

The common shares are set to a price of CA$0.31 per share for aggregate gross proceeds of up to CA$3 million.

The proceeds will be used to support the development of DispensaryTrack and the company's development in California.

Halo expects both the acquisition and the private placement to close on or prior to Oct. 15.

Halo Labs shares were up 8.15% at 22 cents at the time of publication. 

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.