TORONTO--(BUSINESS WIRE)--Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that the Company has started a pilot superfiltration program of live resin, fats and waxes, tails, terpenes and low grade distillate at Halo’s Coastal Harvest facility in Cathedral City, California. Halo has specialized expertise in cannabis extraction and follows internal guidelines that are more stringent than the state guidelines for levels of pesticides in cannabis products. Due to these policies in California alone, the Company has segregated approximately one million three hundred and fifty thousand grams of product that was written off as waste product (the “Waste Product”).
Building on January’s research and development project that reclaimed smaller quantities of Waste Product, the Company now is now proving out that its proprietary superfiltration process is a sustainable method to reduce pesticide levels below California regulatory guidelines. Internal controlled studies showed certain reduction in pesticide levels to non-detectable levels1 while retaining up to 95% of original input weight.
Halo further validated the estimated total cost per gram, including lost material, to be less than $0.75 per gram based on original input weight. In addition to the approximate 1,350,000 grams of Halo’s Waste Product that has been written off and may be in need of remediation, the Company believes that there are tens of millions of dollars of oils and concentrates in California within the Marijuana Enforcement Tracking Reporting Compliance (“METRC”) seed to sale tracking system at manufacturers, distributors and dispensaries that could utilize Halo’s superfiltration technology. The Company anticipates this business to business tolling service represents a potentially large and untapped income stream over the coming months.
Kiran Sidhu, CEO of Halo Labs commented, “When the Company discontinued our operations in California, Halo was left with over 1,350,000 grams of distillate, live resin, fats and waxes that was deemed worthless and was written off.”
He continued, “Utilizing our high caliber VTA machinery from Germany combined with the novel superfiltration process developed by Halo founding scientists and engineering team, we are excited to commercialize this process that essentially allows us to turn this Waste Product to liquid gold distillate, which will help to conserve our cash position and reduce our dependency on third party distillate. Our sales in California to dispensaries continue to grow, which is requiring more and more bulk distillate. Bulk distillate is the principal active ingredient found in vaporizer cartridges, pens and edibles.”
Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows and extracts and processes quality cannabis flower, oils, and concentrates and has sold over 5 million grams of oils and concentrates since inception. Additionally, Halo has continued to evolve its business through delivering value with its products and now via verticalization 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, the Company entered into binding agreements to acquire a dispensary in Los Angeles, 3 KushBar branded dispensaries, 5 development permits in Alberta Canada, and 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 205-hectare cultivation zone via Bophelo Bioscience & Wellness (Pty) Ltd. as well as planned importation and distribution in the United Kingdom via Canmart.
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 commercialization of the Company’s superfilteration process, potential applications of this technology and impact on sales of this technology.
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.
1 See Halo Labs press release dated March 27, 2020.