TORONTO: Halo Labs Inc. and FlowerShop announced a new partnership that will bring much-needed employment opportunities to communities during the uncertain times of the COVID-19 global crisis.
Halo intends to acquire a membership interest in FlowerShop*, in which G-Eazy is a partner and key member of the company.
Halo has entered into a letter of intent (“LOI”) to acquire a 25% membership interest in Feel Better, LLC, dba FlowerShop* (“FlowerShop*”) for $1.5 million, payable primarily in Halo common shares (the “Acquisition”). Halo and FlowerShop* will also execute a licensing, manufacturing, and distribution agreement for FlowerShop* branded products.
“In the face of COVID-19, the timing to bring FlowerShop* and its mission to the market has never been more vital. Their focus on mental and physical wellness, combined with innovative direct to consumer solutions positively impact people’s needs,” commented Kiran Sidhu, CEO and Co-Founder of Halo.
G-Eazy is an American rapper and producer from Oakland, CA. In addition to the success he has seen in the music industry, with multi-platinum selling hit songs, billions of song streams, and sold-out world tours — he is very active with his investments and philanthropy work in his home state of California and beyond.
He comments, “I have seen first hand the power of the plant – witnessing cannabis change my mother’s life in a very positive way. I was instantly drawn to FlowerShop* and its mission to help people feel better – and knew I wanted to take on an active role as a partner. My hope is in the midst of this pandemic – FlowerShop* will be an essential business which stimulates the economy and provides comfort and joy to people through the products we create.”
Halo will acquire 25% membership interests of FlowerShop* for total consideration of $1.5 million payable in Halo common shares, provided that up to $400,000 of the consideration may be payable in cash in four monthly installments following the closing to help support the working capital requirements of FlowerShop*
Halo and the owners of FlowerShop* will enter into an LLC operating agreement providing Halo with approval rights over certain key decisions, as well as other customary minority investor protections
The Halo common shares will be subject to resale restrictions under applicable securities laws, as well as volume trading restrictions for one year following the closing date. During this time FlowerShop* may only sell a number of Halo common shares equivalent to the greater of (a) 10% of the prior trading day’s total volume, or (b) 100,000.
Halo will license, manufacture, and distribute FlowerShop* branded marijuana items, including concentrates and extracts, in California, Oregon, and Nevada, in exchange for a royalty on total gross revenue; FlowerShop* will be responsible for providing all marketing materials, design services, and product packaging
Halo will agree to repurchase Halo common shares from FlowerShop* following the five-month anniversary of the closing date under certain circumstances to help support FlowerShop*’s working capital requirements.