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- Halo Food (HLF) is selling The Healthy Mummy to a third party for $588,540 after paying nearly $20 million for the brand
- Hair loss player Mosh is buying THM off of Halo Foods
- The deal also settled an intracompany debt owed to Halo Foods by Mosh
- Halo originally believed its acquisition of THM would lead to combined revenues exceeding $80 million
- Halo Food shares last traded at 0.7 cents
Halo Food (HLF) has announced the divestiture of its The Healthy Mummy (THM) brand division to hair loss player Mosh.
Mosh will acquire THM from Halo for more than half a million at $588,540.
The move has stirred shareholders who were quick to point out that the company acquired THM for nearly $20 million.
Originally, Halo foresaw that its acquisition could result in combined revenue of $84 million. However, that projection did not materialise.
Both Mosh and Halo have entered into an “arms-length and exclusive” manufacturing agreement to ensure that future additive powders produced by THM continue to come from Halo for an initial term of one and a half years.
Mosh will acquire 100 per cent of the share capital in THM, and all employees will be retained in the transfer.
The deal also acts “in settlement of the intracompany debt owed to Halo manufacturing.”
Halo Food recently impaired its acquisition of THM by $11.3 million, which hit the company’s books as vastly softer-than-expected online sales started affecting profitability.
In its acquisition of THM, Mosh also assumes all liabilities attached to its operations going forward.
Mosh is also launching its own hair loss product targeted at women called “Moshy,” which could be where the company seeks to synergise its acquisition of THM with its existing operations.
Halo Food shares last traded at 0.7 cents.
