Halo Announces Closing of Acquisition of Outer Galactic Chocolates, a Type N License Holder in California. Plans California Edibles Launch by September.
Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that, further to its press release dated January 15, 2020, it has closed its acquisition of Outer Galactic Chocolates, LLC (“OGC”), holder of a Type N manufacturing license in Mendocino County. The acquisition gives Halo a license to produce infused and edible cannabis products adjacent to the Mendo Distribution and Transportation LLC (“MDT”) facility in Ukiah, California. A Type N license permits manufacturers to conduct most cannabis production and related activities, including packaging and labeling; however, it does not allow for extraction. For extraction in California, Halo utilizes its Type 7 licensed facility in Cathedral City, California. In total, Halo now operates 4,4000 SQF in Ukiah, with plans to annex additional licensed square footage in the coming future.
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Halo Labs closed acquisition of Outer Galactic Chocolates (Photo: Business Wire)
- Ownership of Type N California license, allowing for the production of infused and edible products, as well as the packaging of all related manufactured finished goods.
- Halo also plans to launch its Hush edible products gummies and elixirs in THC and multiple THC/CBD formulations, and distribute the award-winning Outer Galactic Chocolate branded chocolate edibles from the licensed Type N facility in Ukiah.
- Retained OGC founder, Jeff Stewart, as a subject matter expert and consultant on edibles and gourmet chocolate production and all IP created from these projects.
- Acquiring the license will reduce cost by eliminating monthly equipment and license rental fee; in addition, license includes long-term lease on licensed space, as well as walk in freezer, tables, racks and other equipment necessary for edibles production.
According to BDS Analytics, edibles spending in the US and Canada is forecasted to grow to more than $4.1 billion by 2022. In California, ingestibles generated $47 million in sales in May 2020, which represents 7% growth from the prior month, and 8% year-over-year growth. In Oregon, May 2020 sales reached $14 million, representing 12% growth from April 2020, and stunning 59% year-over-year growth from May 2019.