Halo Labs Provides California Update - Seite 2

Super Filtration Update

The Company has had success with Super Filtration and is progressing towards full commercialization, having yielded 35,000 grams of distillate from previously unsaleable product. The Company plans to use Super filtered distillate to power Hush vape cartridges and edibles. If successful, the Company anticipates that its Super Filtration capabilities will help establish Halo as a low cost producer by enabling the Company to make distillate from by-product of previously written off inventory.

NoHo Dispensary Acquisition Update

Closing of the Company’s previously announced and proposed acquisition of 66^2/3% LKJ11 LLC (“LKJ”), the winning applicant for the proposed North Hollywood dispensary, is expected to occur prior to the end of June 2020. In furtherance of completing the acquisition, the Department of Cannabis Regulation (the “DCR”) in Los Angeles has initiated the ownership transfer and added Mr. Met and Mr. Sidhu to the approved applicant’s profile in the online portal. This reflects the DCR’s recognition that Halo will be the new majority owner of LKJ.

About Halo

Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows and extracts and processes quality cannabis flower, oils, and concentrates and has sold over 5 million grams of oils and concentrates since inception. Additionally, Halo has continued to evolve its business through delivering value with its products and now via verticalization in key markets in the United States and Africa with planned expansion into European and Canadian markets. With a consumer-centric focus, Halo markets innovative, branded, and private label products across multiple product categories.

Recently, the Company entered into binding agreements to acquire a dispensary in Los Angeles, 3 KushBar branded dispensaries, 5 development permits in Alberta Canada, and Canmart Limited which holds wholesale distribution and special licenses allowing the import and distribution of cannabis based products for medicinal use (CBPM’s) in the United Kingdom. Halo is led by a strong, diverse management team with deep industry knowledge and blue-chip experience. The Company is currently operating in the United States in California, Oregon, and Nevada while having an international presence in Lesotho within a planned 200-hectare cultivation zone via Bophelo Bioscience & Wellness (Pty) Ltd. as well as planned importation and distribution in the United Kingdom via Canmart.