Global Tech Opportunities, Alpha Blue Ocean's investment fund, has entered into an additional financing agreement of CA$65 million ($50.7million) with Halo Collective Inc in the form of convertible debentures.
ABO is expecting that a principal amount of approximately $15-20 million of convertible debentures will be issued from the subscription agreement during 2022 to fulfill Halo's business plan, including the opening of its three planned dispensaries in the Los Angeles area.
Why It Matters?
The acquired capital will strengthen Halo's balance sheet. The intention is to use the proceeds of the agreement for general working capital purposes and fund various organic and inorganic growth initiatives. This will include the acceleration of its U.S. west coast expansion strategy.
"This new capital will allow us to focus on shareholder value creation through strategic investments in retail and indoor grow opportunities in California, new products and increased distribution in Oregon and California, and packaging up and building out our functional mushroom and CBD businesses," Kiran Sidhu, CEO of Halo Collective Inc, said.
Amine Nedjai, CEO of Alpha Blue Ocean, explained that "with Halo being the largest shareholder of Akanda, an international medical cannabis company with grow operations in Africa and distribution to Europe, we believe that Halo is greatly undervalued."
Akanda Corp.'s (NASDAQ:AKAN) shares soared shortly after the company's Nasdaq trading debut on Tuesday, less than a year after the cannabis company was formed. The London-based Akanda priced 4 million common shares at $4 per share for proceeds of $16 million in a deal led by underwriter Boustead Securities LLC.
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