TORONTO--(BUSINESS WIRE)--Halo Labs Inc. (“Halo” or the "Company") (NEO:HALO; OTCQX:AGEEF, Germany:A9KN) is pleased to announce that the Company has entered into a Letter of Intent (the “LOI”) dated August 3, 2020 to establish a joint venture and strategic alliance with Terphogz, LLC, doing business as Zkittlez™ (“Zkittlez”). The joint venture will establish and operate a state- and locally licensed commercial cannabis cultivation facility at Ukiah Ventures Inc. (UVI). Halo and Zkittlez plan to jointly operate this large indoor grow.
The proposed joint venture (the “Zkittlez JV”) will combine Zkittlez™ world-famous genetic strains and growing acumen with Halo’s processing, manufacturing and distribution strengths to bring a range of top-shelf products to the California market.
The proposed Zkittlez™ JV is an 18,000 square foot project in which Halo plans to start the buildout in last quarter of 2020 and to complete the build-out by mid-2021, utilizing Halo’s working capital line.
The joint venture will produce and manufacture cannabis products, using Zkittlez™ existing proprietary cannabis genetics, under Halo’s various licenses in California. The collaboration will then distribute these genetics in various cannabis products in California, under Zkittlez’s existing brand and strain names, as well as jointly developing and commercializing new and unique cannabis genetics in the heart of Mendocino, California.
Jon Orantes, Managing Director of Zkittlez™, describes how the joint venture makes sense for his company: “Obviously we're really excited about the project. Terphogz are considered a top breeding group; and we’ve found it challenging to compete in the California space without a large-scale indoor production of our own. The combination of our brand popularity in California, and Halo's resume of being serious operators who can bring the needed infrastructure, is a winning formula. We are glad to have this opportunity to reach more of the market with our products and bring the Zkittlez movement to the next level!”
Halo’s CEO, Kiran Sidhu, opines: “We have the space at UVI; and the Zkittlez™ team understands how to run a large indoor grow facility. This is truly a perfect combination that should lead us on a very successful path. By choosing Terphogz as our partner, we will ensure that we start with the best raw materials, leveraging our extraction, manufacturing and product development operations with a leading brand-name and strains, such as Zkittlez™ and others in the Zkittlez™ family. We look forward to expanding the reach and accessibility of Terphogz genetics through all our lines, including our new edible products. Running this facility should bolster Halo’s revenue and operating profit. This collaboration will strengthen our vertical supply chain in California.”
About Zkittlez™
Zkittlez™ is a renowned cannabis breeding group responsible for the famous Zkittlez™ variety of cannabis. Terphogz, LLC owns a genetic library including the famous Zkittlez™ cannabis variety, as well as many others, such as Zmoothie, Brain Candy, Z3, and Hindu Zkittlez™. Zkittlez™ has a unique and distinct terpene profile, unlike other genetics in the market, making it distinguishable from all other strains.
Zkittlez™ products typically command a 20% or greater pricing premium, compared to similar products in the market. Zkittlez™ brand value and recognition for creating top-tier cannabis products places the brand on shelves alongside industry leaders, such as Cookies and Connected.
Founders of the Terphogz/ Zkittlez™ brand, Green R. Fieldz and Tony Mendocino, are known worldwide and have over 200,000 followers on social media. Zkittlez™ and its genetic crosses are some of the most sought-after and desirable strains in the cannabis industry. They have won many awards in multiple categories, including numerous 1st places at competitions such as Chalice and The Emerald Cup, as recently as 2019.
About Halo
Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows, extracts and processes quality cannabis flower, oils, and concentrates, and has sold over five million grams of oils and concentrates since inception. Halo continues to evolve its business by delivering value with its products. Current growth includes 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 acquired a dispensary permit in Los Angeles, and UVI, both in California. The Company plans to acquire three KushBar branded dispensaries and five 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, with an international presence in Lesotho within a planned 200-hectare cultivation zone via Bophelo Bioscience & Wellness (Pty) Ltd., as well as planned importation and distribution in the United Kingdom via Canmart.
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".
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. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: unexpected costs or delays in the completion of the Company's proposed dispensaries and other operation; negative results experienced by the Company as a result of general economic conditions or the ongoing COVID-19 pandemic; delays in the ability of the Company to obtain certain regulatory approvals; unforeseen delays or costs in the completion of the Company's construction projects; adverse changes to demand for cannabis products; ongoing projects by competitors that may impact the relative size of the Company’s growing operation; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets; risks related to licensing, including the ability to obtain the requisite licenses or renew existing licenses for the Company's proposed operations; dependence upon third-party service providers, skilled-labor and other key inputs; and the other risks disclosed in the Company's annual information form dated April 16, 2020 and available on the Company’s profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
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.
