TORONTO: Halo Labs Inc. has entered into a definitive agreement dated effective August 5, 2020 with Ukiah Ventures Inc., pursuant to which Halo will acquire all the issued and outstanding shares of Ukiah in exchange for securities of the Halo.
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.”
With the real estate also being included in the transaction, Halo will now own Ukiah’s 6.3-acre property, that includes an approximate 30,000 square-foot, industrial-zoned warehouse. With thirty foot high ceilings enabling future expansion through stacking, the current layout includes approximately 2,000 sq. ft. of office and distribution space, with the remaining 28,000 sq. ft. available for planned cultivation, processing, or manufacturing.
Formerly a recycling plant, the strategically-located property off Highway 101 provides easy access to the large number of licensed farms in the surrounding area, farms that generate the biomass supply for Northern California.
Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows, extracts, and processes quality cannabis flower, oils, and concentrates. Halo sold over 5 million grams of oils and concentrates since inception and has continued to evolve its business through delivering value with its products. Via verticalization, Halo has expanded 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, Halo has acquired one dispensary in Los Angeles, and has an agreements to acquire three KushBar branded dispensaries in Alberta Canada, as well as 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 as well as planned importation and distribution in the United Kingdom via Canmart.
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