Halo Exercises Option to Acquire Outer Galactic Chocolates, a Type N License in California
All figures in USD unless stated otherwise
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TORONTO, Jan. 15, 2020 (GLOBE NEWSWIRE) -- Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce it has exercised Mendo Distribution and Transportation’s (“MDT”) option to purchase award winning Outer Galactic Chocolates LLC (“OGC”), holder of a Type N manufacturing license. MDT was recently acquired by the Company through merger on January 9, 2020.
- Halo will obtain a Type N California license allowing for the production of infused and edible products
- Halo plans to launch its Hush edible products (gummies and syrups) in THC and 1:1 THC/CBD formulations, as well as support the expanded production and distribution of the award winning OGC-branded chocolate edibles in California
- Halo plans to retain OGC founder as subject matter expert and consultant on edibles and gourmet chocolate production
- Halo will own full interest in OGC, and plans to place the business under its California holding company, PSG Coastal Holdings LLC
Pursuant to the press release dated January 9, 2020, Halo acquired MDT and now has elected to exercise the Company’s option, through MDT, to acquire OGC in exchange for $500,000 of Halo’s common stock (“Halo Common Shares”). The acquisition will give Halo a license to produce infused and edible cannabis products adjacent to the MDT facility in Ukiah, California. A Type N license permits manufacturers to conduct most activities including packaging and labeling, however does not allow for extraction. For extraction in California, Halo utilizes its Type 7 licensed facility in Cathedral City, California.
In addition to obtaining the Type N license in California, Halo plans to execute a management agreement with the current management of OGC to aid in the transition and buildout of the business, which will include the introduction of both Halo-branded and other white label infused products. A strategic partnership with existing management will provide a strong base for the development of new edible cannabis products in California under the Hush brand through channels and clientele already established by OGC.