December 5, 2018
TORONTO–(BUSINESS WIRE)–Halo Labs Inc. (“Halo” or the “Company“) (NEO:HALO) is pleased to announced the start of production in Cathedral City, California commenced on November 28, 2018. The initial 1,600 square foot dedicated extraction facility is capable of producing approximately 120,000 grams of cannabis distillate per week. This facility will initially be used to supply Falcon International Corp. (“Falcon“) with a minimum of 50,000 and up to 70,000 grams per week of bulk cannabis distillate to be used for vaping cartridges and disposable pens at US$7.50 per gram with monthly revenue expected to range between approximately US$1.6 million and US$2.3 million after an initial 30 to 45 day ramp up period. The Company expects to begin generating revenue from this facility by the first week of January 2019.
Summary of Current California Production Capabilities:
- Commencement of production at the Company’s 1,600 square foot dedicated extraction facility in Cathedral City, California began on November 28, 2018.
- Total production capacity at the Company’s Cathedral City facility is expected to be approximately 120,000 grams of oils or concentrates per week.
- It is expected that the Cathedral City facility will initially supply the Falcon contract with between 50,00 and 70,000 grams of distillate per week.
- The Company is in the process of securing a steady supply of raw material from multiple sources throughout California to ensure steady throughput.
In preparation for the commencement of production from the Cathedral City extraction facility the Company is securing a supply of raw material inputs, trim and small buds, from multiple sources within the state of California in order to maintain a steady state of production. Further, the Company is in active discussion to provide contract manufacturing services that, combined with the Falcon contract, are expected to allow the Company to achieve 95%+ utilization rate in early 2019.
In Cathedral City, the Company has an additional 8,000 square foot facility currently in pre-construction. Construction at the second Cathedral City facility is scheduled to commence in the first quarter of 2019 and production is expected to commence by the second quarter of 2019.
Kiran Sidhu, Halo’s Chief Executive Officer, commented: “We are very excited to announce the start of production at our first California facility, as we see California as the major growth driver for the Company. California is the largest cannabis market in the world and a leader in cannabis products with demand for cannabis oils and concentrates growing at a rapid pace. The opening of our first California facility is a major milestone for the Company. We are currently evaluating requests from other large potential clients to provide manufacturing services at both our first and second facilities.”
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. Halo has expertise in all major cannabis manufacturing processes, leveraging proprietary processes and products, and has produced over 2.7 million 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 operating in California, Nevada and Oregon. 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.
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.