Halo Collective Inc. (“Halo” or the “Company”) (NEO: HALO) (OTCQB: HCANF) (Germany: A9KN) today announced its intention to consolidate all of its issued and outstanding common shares (“Common Shares”) on the basis of one post-consolidation Common Share for every 100 pre-consolidation Common Shares (the “Consolidation”). The Consolidation was previously approved by the Company’s shareholders at the annual general and special meeting held on June 23, 2021.
The Consolidation is expected to result in the number of issued and outstanding Common Shares being reduced from 2,867,358,846 pre-consolidation Common Shares to approximately 28,673,588 post-Consolidation Common Shares. The exercise or conversion price of warrants, convertible debentures, compensation options and options, and the number of Common Shares issuable thereunder will also be proportionately adjusted upon the completion of the Consolidation. No fractional shares will be issued as a result of the Consolidation. All fractions of Common Shares will be rounded down to the next lowest whole number. No cash consideration will be paid in respect of fractional shares.
The Consolidation is subject to the receipt of all required regulatory approvals, including the approval of the Neo Exchange Inc. The Company will be obtaining a new set of CUSIP and ISIN numbers for the Consolidation. The effective date for the Consolidation and the new CUSIP and ISIN numbers is expected to be October 12, 2021. The Company anticipates that its current trading symbol will remain unchanged.
On September 21, 2021 the U.S. House of Representatives passed the National Defense Authorization Act (“NDAA”) which included the provision of the Secure and Fair Enforcement (“SAFE”) Banking Act. The SAFE act would allow state-licensed cannabis-related businesses to engage freely in relationships with banks and other financial institutions. While the passage of the NDAA is only one step forward, there is now increased possibility that this long-overdue reform for the U.S. cannabis industry could be approved by Congress. The Consolidation is in part in anticipation of this reform, which would position Halo to be considered by senior U,S. exchanges for listing.
