London-based Alpha Blue Ocean has entered into an additional financing agreement with Canada’s Halo Collective – which it describes as “greatly undervalued”.
Investment fund of Alpha Blue Ocean, Global Tech Opportunities, provided financing to Halo for (CAD)$65m (~£39.27m) as convertible debentures.
The financing is the second of a partnership formed between the parties in January 2022, which saw Alpha Blue Ocean provide $14m to support Halo’s expansion into neurotropic nutraceuticals.
Halo, parent company of UK-based Akanda Corp with operations in Africa – which this week saw spikes in shares after its IPO offering on the NASDAQ – will use the capital to strengthen its balance sheet. The proceeds will go towards general working capital purposes as well as to fund organic and inorganic growth initiatives, including the acceleration of its US west coast expansion strategy.
CEO of Alpha Blue Ocean, Amine Nedjai, commented: “We’re very pleased to extend our financial commitment with this second larger financing for Halo.
“The company is at an interesting inflection point as it speeds up its US expansion strategy. Furthermore, 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.
“Halo’s management have proven that beyond growing the operations of its vertically-integrated business, it can find underappreciated assets to invest, grow and spin-off to maximise value for all stakeholders.”
Kiran Sidhu, CEO of Halo Collective Inc: “The US west coast cannabis landscape is under-going massive disruption just as the opportunity for stronger players is as great as ever.
“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.”
In January 2022, Alpha Blue Ocean also announced it will be working with Óskare Capital to identify medical cannabis companies, focusing on Europe, with the greatest potential to enter global markets.
The parties have stated they will be vetting opportunities that address market needs and create fundamental agtech solutions, candidate formulations and molecules for the pharma and wellness industries.
Under this agreement, Alpha Blue Ocean has stated that it expects a principal amount of approximately $15m to 20m of convertible debentures will be issued from the subscription agreement during 2022 to fulfill Halo’s business plan, including the opening of three planned dispensaries in the Los Angeles area.