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Phytocann to be acquired by Halo Collective

Home » Phytocann to be acquired by Halo Collective

Halo Collective has signed a letter of intent to acquire European CBD company Phytocann Holdings.

The acquisition will add revenue, EBITDA, geographic diversification and a CBD-based product lineup to Halo. Halo is offering upfront consideration of €12.2m, with a further potential earn-out of up to €87.8m in debt.

Halo is proposing to acquire Phytocann through a wholly-owned subsidiary to be formed by Halo, in Ontario, Canada – Phytocann International Holdings. The company has stated it is the planned vehicle for all of Halo’s remaining non-THC assets, which are expected to be combined with Phytocann to establish a multi-national wellness platform that will be headquartered in Switzerland.

Read more: Akanda CEO discusses ESG and disruption in European cannabis market

Halo CEO, Kiran Sidhu, commented: “The potential acquisition of Phytocann is a cornerstone of our shareholder value enhancement strategy.

“Phytocann brings multiple, premium-branded CBD products that complement Halo’s existing wellness offerings developed for the United States market. In addition, we see meaningful synergies with Halo’s recent acquisitions of Dissolve Medical, H2C Beverages, Simply Sweet Gummies, and Hushrooms.”

In June 2021, Halo completed a licensing arrangement with Elegance Brands for THC-infused beverage products, which includes Sway’s flagship brand Sway Energy + Immunity Drink.

Sidhu continued: “Halo’s distribution agreement with Sway Energy is also expected to be contributed. Importantly, the addition of Phytocann’s high-margin CBD business is projected to be immediately accretive to Halo’s bottom line. 

“We believe that by separating the THC and non-THC businesses, we can significantly enhance value creation for all of Halo’s stakeholders. We expect PIT to follow a similar path to Akanda Corp.”

Read more: Akanda to accelerate plans with closing of private placement

Phytocann currently has six operating wellness CBD franchised stores, five in France and one in Cyprus, and intends to add 30 more over the next 24 months. The company has also developed its own vending machine, Qanabox, three are currently installed in stores with plans to add 50 more over the 12 months. 

In addition, Phytocann has over 100,000 ft2 of hybrid greenhouses in Switzerland, which has an annual growing capacity of up to 5,000 kg of premium indoor hemp. Its brand lineup currently consists of Ivory Swiss Premium, Harvest Laboratoires, Easy Weed, Kanolia, Herboristerie Alexandra, Buddies, Ghosty Buds and Qanabox.

Phytocann is currently focusing its resources on strengthening e-commerce activities, including seven websites, and has entered into a a partnership with French artist, Vincent Faudemer.

Faudemer has created a limited series of packaging for Ivory called Alien X which includes an NFT collection for customers, creating a new dimension to Phytocann with the possibility to mix cannabis and Web3 revenues under the joint venture being incorporated in Bahamas owned 50 per cent by PhytoCann and 50 per cent by Faudemer.

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