Halo Announces Lease Buy Down of its California Facilities
Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that it has entered into an agreement with Falcon International (“Falcon”) to buy out the entire rental premium of its California locations at Industrial Court 9 at a discount with payment to be completed by the issuance of Halo common shares (the “Common Shares”) at a price of CAD$0.65 per Common Share.
Halo has agreed to pay down the premium of the rent at suite 18 & 19 locations at Industrial Court 9 in exchange for 1,464,505 Common Shares, which will save the Company CAD$521,973, representing a 21% saving on rent at these locations. Additionally, Halo’s suites 21 & 22 rent will also be paid down in exchange for the issuance of 1,242,578 Common Shares, which will save the Company CAD$699,429, representing a 31% saving on rent at these locations once these suites are occupied.
Overall, Halo will issue an aggregate of 2,707,083 Common Shares for the buyout of the remaining rent at these two sites, providing the Company a total savings of CAD$1,221,401 and overall reduced rent expenditure of 26%.
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. Halo has had an agreement since October 2018 to produce and supply up to 70,000 grams of bulk cannabis distillate per week which renews on a rolling 6-month term extensions.
Kiran Sidhu, CEO of Halo, comments: “This is an exciting move for Halo, to continue expansion in California at discounted rental rates. The opportunity to save over $1.2 million in rent over the terms of the leases frees up a capital Halo can now distribute into further growing our operations.”
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 is a global leader in cannabis oil and concentrates and has expertise across as major cannabis manufacturing processes, leveraging proprietary processes and products, and has produced over 4.0M 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 and Oregon as well as Nevada with our partner Just Quality, LLC and in Lesotho with the Bophelo strategic partnership. With a consumer-centric focus, Halo will continue to market innovative branded and private label products across multiple product categories.