Halo Exercises Option to Acquire Outer Galactic Chocolates, a Type N License in California - Seite 2

Indeed ingestible products, in particular “gummies”, are a high value product category in the California market place. According to a July 2019 BDS Analytics report⁽¹⁾, gummies are the top selling ingestible product occupying numbers 1 through 17 on the list of the 20 top selling edible SKUs in California. CBD gummy formulations are also gaining traction.

Kiran Sidhu, Halo CEO and Co-Founder, comments, “Obtaining a Type N manufacturing license in California for the production of infused and edible products is a step in diversifying Halo’s product offering in this growth category. Not only are we building new lines around award winning expertise in OGC, we will support expanded distribution of OGC-branded chocolates to Southern California.  We look forward to expanding our product offering in California, one of the world’s largest cannabis markets and bringing high-end and value-driven edibles to consumers.”

In supporting the growth of OGC-branded chocolates, Halo can distribute this award-winning line of gourmet, artisanal chocolates. OGC’s award winning chef and chocolatier makes small batch edibles utilizing ingredients from local farmers with sustainable growing practices. They have been awarded “Best Dark Chocolate Hybrid” and “Best Chocolate Truffle” by Edible Magazine and took home the prize for “Best Chocolate” at the Emerald Cup in 2017. OGC cannabis infused edibles are available in milk chocolate, sugar free, and dark chocolate throughout dispensaries in Northern California.

Mr. Sidhu continues, “As with our DNA Genetics partnership, this transaction with OGC and its management allows us to add value to the Halo product portfolio, by providing high quality and award winning products. ”

Transaction Details

Pursuant to the terms of the transaction, the sole owner of all membership interests of OGC is expected to be issued 1,982,979 shares ($500,000) of Halo Common Shares that will be priced at $0.252 (C$0.329) based on the 30-day VWAP. 25% of the consideration will be due upon closing the transaction including execution of a definitive agreement and receipt of regulatory approval, with the remainder be released in equal monthly installments over the 12-month period following closing.

Completion of the transaction is subject to, among other things, the satisfaction or waiver of any conditions precedent to the consummation of the transaction (including the receipt of any requisite regulatory and stock exchange approvals).