Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that its subsidiary, Coastal Harvest LLC (“Coastal Harvest”), has been granted a Type 13 Distributor License Transport Only by the State of California (“Type 13 License”).
A Type 13 License permits a licensee to transport cannabis goods between licensees. Halo plans to utilize the Type 13 License to improve the ease and fluidity of its supply chain management across California.
Coastal Harvest’s use of the Type 13 License
Coastal Harvest has manufactured wax/shatter, bulk distillate, bulk live resin, terp sauce and diamonds.
The Type 13 License will enable Coastal Harvest to transport its bulk product to Halo’s other distribution and manufacturing facilities in Southern and Northern California for further refinement into consumer packaged goods. In addition, Coastal Harvest will be able to conduct direct distribution to other non-retail licensees to enable Coastal Harvest’s own cannabis products (including bulk live resin and distillate) to be delivered to other manufacturers and distributors to be further refined and finished.
Since the Type 13 license enables direct distribution of products to licensed manufacturing and distribution facilities throughout California, Halo expects this will reduce certain transportation costs by removing the need to employ third-party transporters.
As a result of the issuance of the Type 13 License, Halo now has the capability to transport products from Coastal Harvest to ICL9 or to MDT where it can arrange for lab testing and direct store distribution, including its planned acquisition in North Hollywood.
Kiran Sidhu, CEO, and Co-Founder of Halo, commented, “As part of our ‘Seed to Sale’ strategy in California, providing our own transportation for specific cannabis products is another vertical that Halo can implement to potentially reduce expenses. With the ability now to transport our products directly from Ukiah in Northern California to Cathedral City in Southern California, and vice versa, we are developing a transportation backbone within California. In addition, once our planned dispensary acquisition in North Hollywood is operational we also should be in a position to deliver to end consumers where permitted.”
Accelerating Halo’s ‘Seed to Sale’ Strategy in California
Halo’s Seed to Sale strategy will see the Company build on its robust position in California, one of the largest markets in the world for cannabis products. Halo is attempting to become vertically integrated with planned California operations, including cannabis cultivation, manufacturing, distribution, a flagship dispensary in development in the heart of North Hollywood and a specialist retail management company.
Halo expects to achieve better economies of scale and higher profit margins through vertically integrated operations. To such end, the Company will continue to seek out new acquisition targets in various verticals, including cultivation, manufacturing, distribution, and dispensaries.
Issuance of Stock Options in December 2019
On December 19, 2019, Halo had issued an aggregate 2,162,000 options to certain employees and independent contracts of the Company. The options were granted under the Company’s Stock Option Plan as part of the Company’s long term incentive/retention plan for employees. The stock options have an exercise price of C$0.30 with an expiry date of December 19, 2024. Following the grant of the options, the number of listed securities outstanding on a fully diluted basis is 280,271,315.
Clarification of Prior News Release
The Company also wishes to correct an inadvertent error in its prior news release dated January 17, 2020. Specifically the prior news release noted that no management or directors of the Company had purchased or sold shares of the Company during the 90 days preceding the press release. In this regard, the Company wishes to confirm that certain members of management and directors did receive Halo common shares during this period in lieu salary and compensation payable to such individuals by Halo. In addition, the Company also confirms that it had engaged each of Digitonic Ltd. and Yikes Inc. to provide certain investor relations, public relations, marketing and other related services since January 17, 2019.
Halo is a global cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest-growing segments in the cannabis industry. Halo is a global leader in cannabis oil and concentrates, having produced over 4.5 million grams of oils and concentrates since inception. The Company has expertise across all major cannabis manufacturing processes, leveraging a variety of proprietary processes and products. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently operating in California and Oregon, as well as in Nevada with our partner Just Quality, LLC, and in Lesotho with the 205-hectare Bophelo cultivation zone.
With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories. Halo recently acquired Dispensary Track platform, which will alleviate customer flow constraints experienced by dispensaries and enable direct consumer interaction.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
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”. The forward-looking information and forward-looking statements contained herein may include, but is not limited to, statements regarding distribution associated with the Type 13 Distributor License.
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 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.