Mr. Kiran Sidhu reports
HALO LABS SIGNS US$2 MILLION PER MONTH EXTRACTION AGREEMENT WITH FALCON INTERNATIONAL TO SUPPLY CANNABIS OIL IN CALIFORNIA
Halo Labs Inc. has entered into an agreement with Falcon
International Corp. to supply a minimum of 50,000, and up to
70,000, grams per week of bulk cannabis distillate used for vaping at $7.50 (U.S.) per gram, totalling between approximately $1.6-million (U.S.) and
$2.2-million (U.S.) in monthly revenue. With initial production to occur in
November, the company believes it can produce and supply 70,000 grams
per week in the coming months. The contract has an initial term of six
months and extends indefinitely in rolling six-month extensions. The
company is finalizing the buildout of its California manufacturing
facility this month and expects to deliver initial shipments in November, 2018.
International is a leading California cannabis company with exclusive contracts
to produce and distribute some of California's leading brands, including
The Clear and CRU. Falcon
International currently distributes products to
approximately 70 per cent of all California licensed dispensaries.
Summary of transaction:
Halo Labs to provide Falcon
International with a minimum of 50,000 grams and a maximum of 70,000 grams of
bulk extract each week at a price of $7.50 (U.S.) per gram;
Each batch to provide a total tetrahydrocannabinol concentration of at least
85 per cent;
The initial term is until March 24, 2019, and shall continue
indefinitely until either party provides a written notice at least six months prior to the stated termination date.
Kiran Sidhu, chief executive officer of Halo Labs, commented: "Falcon has built an incredible
portfolio of leading brands and has an extensive distribution network
throughout California. We are honoured to be selected as their preferred
cannabis oil and concentrates manufacturing partner. Halo is very
excited to enter California and this contract provides a solid
foundation for our operations, as we plan to accelerate our revenue
quickly. We look forward to growing our partnership with Falcon as we
ramp production in California and other states."
Jim Kunevicius, chief executive officer of Falcon
International, commented: "We are very excited to work with
Halo given their proven track record and demonstrated expertise in a
variety of extractions techniques. Working with Halo allows us to focus
on growing our brand portfolio and delivering consistent high-quality
product to our customers. We are confident in Halo's ability to deliver
large-volume contracts and see them as a long-term partner that can grow
and scale with us."
Halo Labs California manufacturing
In Southern California, Halo Labs is currently working toward commencing
manufacturing operations from two facilities and distribution from one
facility in Cathedral City. The first facility is approximately 1,600
square feet, with approximately 500 square feet dedicated for volatile
extraction in a C1D1 explosive-proof room. This facility will produce
winterized, decarboxylated and distilled butane hash oil (BHO).
The second facility, which Halo Labs intends to operate in Southern California,
is located within one-half mile from
the first facility and is approximately 7,800 square feet. Halo Labs'
manufacturing operations at this facility will include additional
volatile extraction as well as non-volatile extraction and light
assembly. Halo Labs also intends to utilize the facility to house its
distribution business for Southern California.
About Falcon International Corp.
Falcon International is a vertically integrated California
cannabis company. Falcon International is a leader in cannabis R&D (research and development) and brand development. The
company's statewide distribution platform and house of brands currently
serve over 70 per cent of the dispensaries in California.
About Halo Labs Inc.
Halo Labs is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest-growing segments in the cannabis industry. Founded in Oregon in 2016, Halo has expertise in all major cannabis manufacturing processes, leveraging proprietary processes and products, and has produced over 2.5 million grams of oils and concentrates since inception. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The company is currently expanding its operations with new facilities in Nevada and California.
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