Halo Food Co. Limited (ASX:HLF) entered into an agreement to acquire The Healthy Mummy Pty Limited from Whiteoak Pty Ltd and RhianAllen for AUD 22 million on February 15, 2022. Acquisition price of AUD 17 million consisting of AUD 10.84 million in cash and AUD 6.17 million in shares and a AUD 5 million earn-out, subject to revenue and EBITDA performance milestones.

Earn-out consideration consists of AUD 1 million cash payment and AUD 4 million equity issue to Rhian Allen. AUD 2 million of equity will be subject to voluntary escrow for a period of 12 months from the date of issue, with remaining equity to be subject to voluntary escrow for a period of 24 months from the date of issue. The acquisition will be funded by an equity raising which comprises a AUD 3.5 million Placement, a Share Purchase Plan to raise up to an additional AUD 3.0 million and a ~AUD 13 million new debt facility, replacing the Company's existing Australian debt facilities.

THM recorded revenue of ~AUD 21 million and EBITDA of AUD 4 million during 2021. The transaction is subject to satisfaction of conditions precedent including Halo shareholder approval and is expected to be completed on March 21, 2022.