HALO Acquires 100% of Ukiah Ventures Inc. and Lays Groundwork for Accelerated Revenue Growth in California
Halo Labs Inc. (“Halo” or the "Company") (NEO: HALO; OTCQX: AGEEF, Germany: A9KN) is pleased to announce that it has entered into a definitive agreement dated effective August 5, 2020 (the “Share Exchange Agreement”) with Ukiah Ventures Inc. (“Ukiah”), the shareholders of Ukiah (the “Ukiah Shareholders”), the holder of the outstanding warrants of Ukiah (the “Warrantholder”), and Origins-Cali, Inc. (“Origins”), pursuant to which the Company will acquire all the issued and outstanding shares of Ukiah (the “Ukiah Shares”) in exchange for securities of the Company (the “Transaction”). Prior to the Transaction, the Company holds a 14.7% equity stake in Ukiah as a result of the Company’s initial investment in Ukiah in December 2019.
Ukiah services licensed cannabis processors and distributors that currently focus on the procurement of biomass from farms located primarily in the northern California region, and distribution to manufacturers and processors throughout California. Ukiah allows licensed operators to provide a conduit for cannabis to flow from cultivators to manufacturers and distributors. Located in Ukiah, California, Ukiah Ventures Inc. owns a scalable facility of approximately 30,000 square feet located on 6.3 acres with industrial zoning, strategically located off Highway 101 and is easily accessible by the large number of licensed farms in the surrounding area. Ukiah also offers value added services for to California cultivators, including trimming, curing, drying, freezing/storing services. Long-standing relationships with the farming communities in its area of operation allows Ukiah to identify profitable opportunities to acquire biomass and procurement at competitive prices.
Beyond the ability to acquire supply agreements with Emerald Triangle cultivators, the Company intends to swiftly exercise the option held by Ukiah to acquire a 100% interest in licensed operator Origins. With all necessary licenses in hand, cultivation, processing, and distribution, Halo intends to put up a 576 light grow, leveraging its relationship with a top-tier cultivator in a planned indoor facility, thus guaranteeing a continuous supply chain of high quality cannabis for the lucrative and growing California market. Halo’s President, Katie Field, summarizes the benefits of the strategic acquisition: “The acquisition of Ukiah, with its current and competitive relationships serving some of the Emerald Triangle’s finest flower producers, and execution of our planned, large indoor grow in a joint venture with a respected, leading grower and seed bank, we believe these milestones will increase Halo’s access to the best raw materials in California. By bolstering our vertical supply chain in this market we anticipate a sizeable upside in forecasted revenue.”