It's Halo Labs' first planned international acquisition of an importer and distributor of licensed medicinal cannabis products.
The company said it plans to purchase, partner and apply to attain more national licenses within Europe and other regions to enable direct market access for its products created from cannabis cultivated in Lesotho.
Through Canmart, Halo said hopes to start exports to the U.K. in the second half of 2020.
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The transaction size is expected to be CA$6 million ($4.5 million), payable in Halo common shares at a price of CA$0.35 per share, according to the company.
The deal is expected to close in the next 75 days.
"The U.K. is one of the world’s largest individual cannabis markets," Kiran Sidhu, Halo’s CEO and co-founder, said in a statement. ”Our goal is to become a major player in the U.K. in the coming years. With the quality and cost of medical cannabis we are growing in Lesotho, the acquisition of Canmart will put us in prime position to grow our business as cannabis-based medicinal treatments become more mainstream across Great Britain.”
Halo Labs shares closed Tuesday's session down 4.18% at 20 cents.