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TORONTO, Jan. 21, 2021 /CNW/ – Halo Labs Inc. (“Halo” or the “Company“) (NEO: HALO) (OTCQX: AGEEF) (Germany: A9KN) today announces that unexpected surge in sales and the Company has entered into a commitment letter (the “Commitment Letter“) to obtain up to CDN$10 million in unsecured, non-dilutive and non-convertible credit from an arm’s length lender.
“January has started off with a bang as a result of unanticipated increased sales of finished goods to dispensary clients. We need capital for raw material, packaging supplies, inventory restocking and general working capital purposes,” stated Kiran Sidhu, Chief Executive Officer of the Company.
The financing is comprised of an unsecured non-revolving line of credit for up to CDN$10 million (the “Credit Facility“). The Company will be permitted to draw from the Credit Facility for a period of 12 months from the date of closing. Individual draws under the Credit Facility will bear interest at a rate of 9% per annum and have a maturity date of 18 months from the date of drawdown.
The Credit Facility remains subject to the satisfaction or waiver of certain customary conditions precedents and the negotiation and execution of definitive documentation, however, in accordance with the terms of the Commitment Letter, the Company will receive an initial advance of CDN$500,000 (the “Initial Advance“) while the parties negotiate such definitive documentation.
In connection with the entering into of the Credit Facility, the Company has agreed to issue common shares in satisfaction of: (i) a CDN$200,000 administrative fee, (ii) a CDN$200,000 commitment fee, and (iii) a CDN$300,000 corporate advisory fee. The Company expects to issue an aggregate total of 6,666,666 common shares in satisfaction of such amounts, of which 3,333,333 common shares are expected to be issued following receipt by Halo of the Initial Advance in accordance with the terms of the Commitment Letter and subject to receipt of all necessary approvals, including the approval of the NEO Exchange Inc. If required by applicable securities laws, such common shares will be subject to a statutory hold period of 4 months plus a day.
About Halo Labs
Halo Labs is a leading, vertically integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils and concentrates, and has sold approximately eight million grams of oils and concentrates since inception. Halo continues to evolve its business and scale efficiently, partnering with trustworthy leaders in the industry, who value the Company’s operational expertise in bringing top-tier products to market. Current growth includes expansion in key U.S. markets, the United Kingdom, Africa, the Republic of Malta in partnernship with MedCan Ltd., and planned expansion into the Canadian retail market.
Halo is led by a strong, diverse and innovative management team with deep industry knowledge and blue-chip experience. The company is currently operating in the U.S. in California, Oregon and Nevada. The Company sells cannabis products principally to dispensaries under its own brands Hush, Mojave, Exhale, and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™), Winberry Farms and FlowerShop.
As part of continued expansion and vertical integration in the U.S., Halo boasts several grow operations throughout Oregon and California. In Oregon, the Company has a combined seven acres of outdoor cultivation, including East Evans Creek, a six-acre grow site in Jackson County, and Winberry Farms, a one-acre grow site in Lane County. In California, the Company is building out Ukiah Ventures, a planned 30,000-square-foot indoor grow, processing and manufacturing facility, including up to an additional five acres of industrial land to expand. Halo has also partnered with GMH to purchase Bar X Ranch in Lake County, California, with plans to develop up to 80 acres of cultivation, which would comprise the largest grow in Northern California.
Recently, the Company has entered into a non-binding letter of intent with Red Light Holland Corp. for the purpose of creating a joint venture to become a licensed psilocybin manufacturer to supply psilocybin products to licensed service centers in the State of Oregon.
Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd (“Bophelo”) in Lesotho, South Africa, which holds one of the largest marijuana cultivation licenses in Africa with a future capacity of up to 495 acres. To further Halo’s global presence, the Company recently acquired cannabis-based product for medicinal use (“CBPM”) importation and distribution licensing in the United Kingdom via cannabis suppliers Canmart Ltd. Halo expects the cultivation and manufacturing operations of Bophelo, combined with the importation and distribution capabilities of Canmart, to drive growth of a well-positioned business to serve the U.K. market.
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”. Forward-looking information may relate to anticipated events or results including, but not limited to: the execution of definitive loan documentation in respect of the Credit Facility, the advancement of the Initial Advance, the issuance of common shares in satisfaction of certain fees payable in connection with the Credit Facility and Commitment Letter and the hold periods applicable to such common shares.
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. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the availability to the Company of alternative sources of financing; an inability of the parties to successfully negotiate the terms of definitive loan documentation; delays in obtaining required regulatory approvals; changes in the financial markets; and the other risks disclosed in the Company’s annual information form dated April 16, 2020 and other disclosure documents available on the Company’s profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
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.
SOURCE Halo Labs Inc.
For further information: Halo Labs, Investor Relations, email@example.com
Halo is a leading, vertically integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils, and concentrates, and has sold approximately six million grams of oils and concentrates since inception. Halo continues to scale…
Jan 21, 2021, 16:20 ET