Halo Labs Signs US$2 Million Per Month Extraction Agreement with Falcon International to Supply Cannabis Oil in California
Halo Labs Inc. ("Halo" or the "Company") (NEO:HALO) is pleased to announce it has entered into an agreement with Falcon International Corp. (“Falcon”) to supply a minimum of 50,000 and up to 70,000 grams per week of bulk cannabis distillate used for vaping at US$7.50 per gram totaling between approximately US$1.6 million and US$2.2 million in monthly revenue. With initial production to occur in November, the company believes it can produce and supply 70,000 grams per week in the coming months. The contract has an initial term of 6 months and extends indefinitely in rolling 6-month extensions. The Company is finalizing the build out of its California manufacturing facility this month and expects to deliver initial shipments in November.
Falcon is a leading California cannabis company with exclusive contracts to produce and distribute some of California’s leading brands, including The Clear and CRU. Falcon currently distributes products to approximately 70% of all California licensed dispensaries.
Summary of Transaction
- Halo to provide Falcon with minimum 50,000 and maximum 70,000 grams of bulk extract each week at a price of US$7.50 per gram.
- Each Batch must provide a total THC concentration of at least eighty-five percent
- The initial term is until March 24, 2019, and shall continue indefinitely until either Party provides the written notice at least 6 months prior to the stated termination date
Kiran Sidhu, CEO of Halo Labs said, “Falcon has built an incredible portfolio of leading brands and has an extensive distribution network throughout California. We are honored to be selected as their preferred cannabis oil and concentrates manufacturing partner. Halo is very excited to enter California and this contract provides a solid foundation for our operations as we plan to accelerate our revenue quickly. We look forward to growing our partnership with Falcon as we ramp production in California and other states.”
Jim Kunevicius, CEO of Falcon said, “We are very excited to work with Halo given their proven track record and demonstrated expertise in a variety of extractions techniques. Working with Halo allows us to focus on growing our brand portfolio and delivering consistent high-quality product to our customers. We are confident in Halo’s ability to deliver large volume contracts and see them as a long-term partner that can grow and scale with us.”
Halo California Manufacturing
In Southern California, Halo is currently working towards commencing manufacturing operations from two facilities and distribution from one facility in Cathedral City. The first facility is approximately 1,600 square feet with approximately 500 square feet dedicated for volatile extraction in a C1D1 explosive-proof room. This facility will produce winterized, decarboxylated and distilled butane hash oil (referred to as "BHO").
The second facility which Halo intends to operate in Southern California is located within a half mile from
the first facility and is approximately 7,800 square feet. Halo’s manufacturing operations at this facility will include additional volatile extraction as well as non-volatile extraction and light assembly. Halo also intends to utilize the facility to house its distribution business for Southern California.
Falcon International Corp. is a vertically integrated California cannabis company and leader in cannabis R&D and brand development. The company’s statewide distribution platform and house of brands currently serves over 70% of the dispensaries in California.
Halo is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Founded in Oregon in 2016, Halo has expertise in all major cannabis manufacturing processes, leveraging proprietary processes and products, and has produced over 2.7M grams of oils and concentrates since inception. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently expanding its operations with new facilities in Nevada and California. With a consumer-centric focus, Halo will continue to market innovative branded and private label products across multiple product categories.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
Investors are cautioned that, except as disclosed in the information circular prepared in connection with the Transaction or this news release, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Halo should be considered highly speculative.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”.
By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Halo to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions.
Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.
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