Halo Labs Inc. (“Halo” or the “Company”) (NEO:HALO) is pleased to announced it has entered into an agreement with Falcon International Corp. (“Falcon”) to supply a minimum of 50,000 and up to 70,000 grams per week of bulk cannabis distillate used for vaping at US$7.50 per gram totaling between approximately US$1.6 million and US$2.2 million 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 6 months and extends indefinitely in rolling 6-month extensions. The Company is finalizing the build out of its California manufacturing facility this month and expects to deliver initial shipments in November.
Falcon 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 currently distributes products to approximately 70% of all California licensed dispensaries.
Summary of Transaction
- Halo to provide Falcon with minimum 50,000 and maximum 70,000 grams of bulk extract each week at a price of US$7.50 per gram.
- Each Batch must provide a total THC concentration of at least eighty-five percent
- The initial term is until March 24, 2019, and shall continue indefinitely until either Party provides the written notice at least 6 months prior to the stated termination date
Kiran Sidhu, CEO of Halo Labs said, “Falcon has built an incredible portfolio of leading brands and has an extensive distribution network throughout California. We are honored 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, CEO of Falcon said, “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 California Manufacturing
In Southern California, Halo is currently working towards 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 (referred to as “BHO”).
The second facility which Halo intends to operate in Southern California is located within a half mile from
the first facility and is approximately 7,800 square feet. Halo’s manufacturing operations at this facility will include additional volatile extraction as well as non-volatile extraction and light assembly. Halo also intends to utilize the facility to house its distribution business for Southern California.
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