Bullvester News Letter - Promotional But a Good Summary So far, there's only been hints and speculation that Halo Collective's (NYSE:HAL) (NASDAQ:HALO) subsidiary is targeting a Nasdaq listing. But the time of mere speculation is now over!
For years, the "mother" Halo Collective (NASDAQ: HLO ) has nurtured her "kids" Akanda, Triangle, and Halo Tech, keeping them alive and nurturing them at great expense and with limited funding. Now they start their own lives and after all the hard work, the reward for the mother should be a rigorous reassessment of her worth, so that what has been achieved is finally recognized.
First things first, let's look forward to Akanda Corp's Nasdaq debut. in which the assets "Bophelo" (200 ha cannabis cultivation in Lesotho) and "Canmart" (fully licensed cannabis import and trade in the UK) are stuck. The preliminary prospectus for the Nasdaq IPO was filed with the US Securities and Exchange Commission (SEC) yesterday:
Source: SEC
The price range in which the IPO is to take place has been set between 4-6 USD. The Nasdaq symbol will be "AKAN". A pre-IPO financing of US$5.3 million at a price of US$2.50 was closed in November. As part of the IPO, Akanda would like to place 4,000,000 shares with investors in order to raise additional capital between USD 16 and 24 million.
After the IPO, Halo Collective (NYSE: HAL ) will own 12.3 million shares in Akanda. - At an IPO price of $5.00, this represents an equity value of $61.5 million. HALO's market value is currently USD 32.8 million. It's also why Halo Collective (NYSE: HAL ) is a clear buy right now, in my view.
I believe that, supported by the sober numbers, it is not that difficult to see this situation as a great opportunity.
opinion author
Conclusion:
Now, if you invest in Halo Collective (NASDAQ: HALO ) , which has a market cap of $32 million, you get:
- 8-10 million quarterly sales with Upside through the dispensaries (just before opening);
- a potential equity stake in Akanda estimated at approximately $60 million post-IPO;
- a potential post-IPO stake in Triangle of $72.5 million; and
- a still unknown stake in Halo-Tech after IPO.
Akanda and Triangle have what it takes to become high-flyers post-IPO, given the sheer size of the cannabis plantable area alone -- which means said stake values could skyrocket very quickly. Consider that Trulieve Cannabis Corp. (CSE: TRUL) -- valued at CAD$1.8 billion -- has a smaller and non-contiguous acreage than Triangle. Halo owns around 50% of Triangle.
California
Halo Collective (NASDAQ: HLO ) is now (finally) starting to execute projects outside of Oregon's expanding cannabis cultivation -- cue: three "Budega" dispensaries in Los Angeles.
I therefore consider the milestone that was recently reached in California to be particularly important. With the City of Los Angeles' DCR license in hand, the cannabis shop will soon open on one of the busiest streets in Los Angeles (North Hollywood).
According to Halo estimates, this business alone should generate annual sales of USD 10 million. That seems cautiously understated, because if you use the average value of $974 per square foot of retail space to calculate ( link ), it could even be over $14 million. A recent tweet from the company shows how far the work has progressed:
The NoHo Budega is developing well. The new sign has been installed and the window coverings are going up this week! Next comes shelving and final wall paneling. We're excited to open this shop in the vibrant North Hollywood neighborhood, followed by two other prime locations!
Source: Halo Collective Tweet
Halo Collective (WKN: A3C9VV ) also recently updated on the progress of the expansion of the Westwood Dispensary (WeWo), which is located at the intersection of various well-known "places to be" locations in Los Angeles. This location should represent approximately $22 million in annual sales based on retail space.
The Westwood Dispensary is located on Santa Monica Boulevard in the immediate vicinity of the University of California (UCLA), but also to Beverly Hills, directly on the connecting road from Hollywood to the Santa Monica Pier and Venice Beach, even with parking facilities. It seems to be making huge strides towards the opening, as the information published on the company's Twitter shows:
We're excited to share Westwood Budega's progress - at the finish line! Expect high tourist traffic as it is the closest store to the Beverly Hills Tourist District and the Flats. UCLA is just around the corner, retail is all about location and it's the best.
Source: tweet
Halo Collective Inc.*
WKN: A3C9VV, NEO: HALO
COOL THING: WITH AN ACCOUNT AT SMARTBROKER YOU CAN TRADE THIS STOCK FROM 0 EURO. – A BROKER CHANGE OFTEN PAYS OFF!!
Akanda:
Halo Collective (NYSE: HAL ) recently officially sold its two assets, Bophelo (the world's largest licensed cannabis acreage by area) and Canmart (fully licensed UK cannabis importer and distributor), to Akanda Corp. in exchange for 13,129,212 shares. brought in.
People are still very reluctant to use the word "Nasdaq" in connection with Akanda. This may be due to the very strict requirements of the SEC that apply to IPOs. In my opinion, however, there is only one logical conclusion due to the involvement of Boustad Securities and that is called "Nasdaq"!
At an IPO price of $5 per share, the 13 million Akanda shares are worth $65 million. That exceeds Halo Collective's current rating by over 50%!!!
triangle:
But Halo Collective (NASDAQ: HLO ) recently got more specific with the Triangle Canna Corp. IPO : Halo Collective Provides Update on Triangle Canna
Halo Collective (NASDAQ: HLO ) is releasing an update on Triangle Canna Corp. Together with Green Matter Holding Inc. (operator of the sixth largest cannabis farm in California), they each own 50% of the so-called Bar-X Farm (647 hectares). The Triangle Canna Corp., in which Halo owns 44% and is the tenant of the farm, is now apparently to get its own stock market listing.
To date, Triangle Canna has received 271 licenses from the California Department of Cannabis Control . Each license allows for up to 10,000 square feet of cannabis cultivation - a total of around 62 acres (25.5 hectares) . The necessary licenses from the district administration are expected by the end of 2021. Learn more about Triangle Canna Corp. here: https://investintriangle.com
$75 million Reg-A+ funding
With Triangle Canna's Form 1-A Offering Statement qualified by the US Securities and Exchange Commission (SEC), Triangle intends to raise up to $75 million at a pre-assessment of $165 million. dollars to complete. Thereafter, Triangle intends to seek a listing of its common stock on a recognized North American stock exchange. To date, Halo has invested approximately $2 million in the project.
Triangle conclusion:
To put it bluntly, Halo Collective (NASDAQ: HAL ) will create $72.6 million (initially) in value from the $2 million investment with this IPO, and the Bar-X project at the same time Equip $75 million to ensure rapid expansion. Despite this, Halo still owns 50% of the Bar-X Farm (additional rental income).
If you compare the largest cannabis farms in the USA with the Bar-X Farm, you will learn that they will be far ahead of well-known listed companies in terms of area:
- Trulieve Cannabis Crp. (CSE: TRUL) – Valuation CAD$1.8 billion
- Curaleaf Holdings (CSE: CURA) - Valuation CA$6.4 billion
- Columbia Care (NEO:CCHW) - valuation C$1.5 billion
source presentation
California expansion:
There are big plans in the US main market in California:
- Flowershop – VIP cannabis brand, and
- three Hollywood dispensaries!
Halo Collective (NYSE: HAL ) recently announced that it has received approval from the Los Angeles Department of Cannabis Regulation for its Budega cannabis shop in the Arts District of North Hollywood (NoHo). The final significant regulatory step in opening the business to the public is regulatory approval and state-level licensing from the California Department of Cannabis Control, which the Company is expected to receive by the end of February. The NOHO location is the second Budega-branded pharmacy to open in Southern California in the next few months.
The 1,200-square-foot retail facility is strategically located at the northwest corner of Lankershim Boulevard and Hesby Avenue in the NoHo Arts District, one of metropolitan Los Angeles' liveliest and busiest areas with over $1 billion in investments in the coming years a number of large scale residential and commercial development projects to be invested.
The NoHo location alone is expected to generate nearly $10 million in retail sales annually once it opens. The company is also licensed for home delivery and this additional service is expected to increase sales and help capture a high overall market share. The NoHo location's delivery service area includes Studio City, North Hollywood, Hollywood Burbank and the eastern San Fernando Valley.
Opening a delivery-licensed cannabis shop in a bohemian neighborhood off a busy link road (with parking)—if that's not a bonanza, what is?
opinion Auor
The second Budega location, which is also preparing to open, is on Franklin/Argyle. Within a 5-kilometer radius are West Hollywood, Beverly Hills, Universal City, Warner Bros, Hollywood Hills, and much more
Budega Location - Franklin/Argyle - Faade by Jet Martinez @jetmar1 The third location is on Santa Monica Boulevard, which connects Hollywood and Beverly Hills to the sea (Santa Moica Pier, Venice Beach)
flower shop
In late 2020, Halo Collective (NASDAQ: HALO ) inked a highly anticipated partnership with FlowerShop*, a conceptual wellness brand, and partnered with key member G-Eazy, an American rapper and producer from Oakland, California, to now partner with FlowerShop on sale!
The recently launched online sale, which was limited to the Bay Area near Los Angeles, proved to be a complete success. The products were sold out within a few hours.
Going forward, Gerald Gillum aka G-Eazy will be the brand ambassador for FlowerShop, a brand created by G-Eazy management. FlowerShop's cannabis products are produced exclusively by Halo Collective (NYSE: HAL ) and Halo also has an interest in FlowerShop. .
G-Eazy achieves an enormously broad impact due to its level of awareness (around 20 million followers on the social media channels in total)! He's a top-notch influencer, and that should show in the form of skyrocketing post-brand sales.
Conclusion:
Taking a look at the sober numbers, one can't help but attest to a large degree of undervaluation at Halo Collective (NYSE: Halo Collective ) , and one should inevitably conclude that an investment in Halo stock may well be a might be a great idea.
You can find the original report HERE .
Helmut Pollinger *Please note the following information on the conflicts of interest definitely existing at bullVestor with regard to this publication as well as our risk information and our disclaimer