TORONTO--(BUSINESS WIRE)--Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce it has entered into a letter of intent with respect to the proposed investment by Halo of 1,333,333 common shares of Ukiah Ventures Inc. (“UVI”) (which will equal an approximate 17.5% ownership interest) in exchange for 5,940,000 common shares of Halo (the “Transaction”). UVI is a cannabis distribution, processing and manufacturing company providing biomass procurement and value-added services such as drying, trimming, packaging, freezing and storing cannabis.
Based in Ukiah, California, UVI is led by a group of seasoned cannabis entrepreneurs who operate a 30,000 square foot processing and manufacturing facility located adjacent to California’s highway 101 allowing for logistical advantages to service the entire of California. UVI identified this facility as a strategic asset as it sits on 6 acres of property that is available to accommodate proposed business plan expansion.
As part of the Transaction, UVI will assist Halo in securing a steady supply of biomass by issuing a right of first refusal to Halo for three years, up to a monthly quota of 15,000 pounds, on all biomass procured for the purpose of processing and manufacturing only. UVI will also provide Halo with rent-free access to its Ukiah facility for the first year of the strategic relationship. Halo intends to utilize the capacity at UVI’s facility to establish a secondary processing location to service Northern California.
“Halo is excited to partner with UVI as the company continues to expand in California,” said Kiran Sidhu, CEO and Co-Founder of Halo. “Investing into UVI provides Halo with not only diversification into distribution through partial ownership, but also allows Halo to strategically procure biomass and manufacture cannabis oils and distillate at a discounted rate in California’s largest cannabis growing belt; the Emerald Triangle. This is the first step in our Northern California strategy.”
Overview of Ukiah Ventures Inc. (“UVI”)
UVI is a B2B distributor that currently focuses on the procurement of biomass from farms located primarily in the northern California region, and distribution to manufacturers and processors throughout southern California. UVI provides a conduit for product to flow from cultivator to manufacturer. Located in Ukiah, California, UVI owns a scalable facility of approximately 30,000 square feet, strategically located off Highway 101 and is easily accessible by the large number of licensed farms in the surrounding area. UVI also plans to also offer value added services for local cultivators, including trimming, curing, drying, freezing/storing services. Long-standing relationships with the farming communities in its area of operation allows UVI to identify arbitrage opportunities when acquiring biomass and be able to procure supply at competitive prices.
Halo is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Halo is a global leader in cannabis oil and concentrates, having produced over 4 million grams of oils and concentrates since inception. The Company has expertise across all major cannabis manufacturing processes, leveraging a variety of proprietary processes and products. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently operating in California and Oregon, as well as in Nevada with our partner Just Quality, LLC, and in Lesotho with the Bophelo strategic partnership. With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein may include, but is not limited to, statements regarding the Transaction (including the terms thereof, the entering into of definitive documentation and closing conditions), the receipt of regulatory approvals, Halo’s acquisition of biomass and establishment of a secondary processing location.
By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.