Halo Labs Signs US$2 Million per Month Extraction Agreement
Halo Labs Inc. (“Halo” or the “Company”) (NEO:HALO) is pleased to announced 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
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.