Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 32 n° 220

DCR Licensing Process Audit Report

Posted by fidest press agency su domenica, 5 aprile 2020

Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) today announced that, due to delays caused by the COVID-19 pandemic, the “Drop Dead Date” associated with the closings of the planned acquisitions related to the North Hollywood dispensary have been extended to May 31, 2020 from the original date of March 31, 2020. This includes both the acquisition of the retail management company, Crimson & Black (“C&B”), and the acquisition of the controlling interest in the dispensary applicant LKJ11 LLC (“LKJ”). Furthermore, the audit of the Los Angeles Department of Cannabis Regulations (“DCR”) application and licensing process, which was conducted by an independent auditor has been completed and the license issuance process may now continue. LKJ, a dispensary license applicant with a location in the heart of the NOHO district of North Hollywood, should now obtain its license in short order.Further to the Company’s press releases dated February 28 and March 6, 2020 concerning Definitive Agreements to acquire the controlling interest in the North Hollywood dispensary applicant LKJ and the accompanying management company, C&B, Halo has agreed to extend the closing deadline to May 31, 2020. The extension will provide more time to finalize the Definitive Agreements during a time when everyday business interactions continue to experience delays due to recent COVID-19 pandemic. This includes the recent extension of federal-mandated social distancing guidelines which have been extended until April 31st as the federal, state, and local governments join forces to combat the virus.Additionally, following a thorough review of the DCR application and licensing process, the independent audit found that the process was conducted in good faith and found no evidence of bias or unfairness. The Auditor found DCR’s ‘normalization process’ leveled the playing field, eliminated any unfair advantage, and the report recommended that the DCR continue awarding and giving final approvals to winning applicants. These results are favorable for Halo as the Company finalizes the acquisition of C&B, as well as its acquisition of controlling interest in LKJ, a winning applicant.The initial application process was highly selective as only 100 licenses were issued from more than 800 applicants. Even though the COVID-19 pandemic has shuttered a majority of businesses, both the cannabis and the construction industry have been deemed critical businesses in Los Angeles during the pandemic, and therefore have permission to continue conducting business in ordinary course, subject to local and CDC guidelines. The Company expects that once the DCR continues with the awarding of licenses and LKJ receives its license, the build out of the dispensary and its opening will continue on schedule, with the Company targeting an opening in the second quarter of 2020.The build out is expected to be one of North Hollywood´s largest retail dispensary locations, boasting nearly 4,000 square feet and significant onsite parking. Located in the heart of North Hollywood, the dispensary will be situated on Lankershim Blvd. and Hesby Ave., which are heavily transited streets with significant vehicle and pedestrian traffic.Upon the NOHO dispensary’s opening, Halo expects to commence direct retail sales of its own branded and white-labeled cannabis products, in turn fueling LKJ’s sales and reducing starting inventory costs. Halo will leverage manufacturing in Southern California at Cathedral City and cultivation procurement, manufacturing, and distribution operations in Northern California to scale up its direct-to-dispensary business.Katharyn Field, President of Halo Labs, states, “We are pleased with the outcome of the DCR audit report and believe this paves the way for the City of Los Angeles to allow the initial dispensary license recipients to build out and open as soon as possible. We still anticipate opening the North Hollywood dispensary by the end of June and launching home delivery in the surrounding area as well. Above all, Halo will implement appropriate measures to ensure that retail operations are mindful of any guidelines still recommended by state and local governments, as well as the CDC, to protect both customers and employees from COVID-19.”

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