Cannabis Oil Producer Halo Labs Provides Business Update
TORONTO--(BUSINESS WIRE)--Sep 25, 2018--Halo Labs Inc.:
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Apogee Opportunities Inc. (to be renamed Halo Labs Inc.) (” Halo ” or the ” Company ”) is pleased to provide a corporate and operational update following the approval of the proposed business combination of Apogee Opportunities (USA) Inc., a wholly-owned subsidiary of the Company, and ANM, Inc. (” ANM ”), following which the common shares of Halo will be listed on Aequitas NEO Exchange Inc. (the ” Exchange ”) under the symbol “HALO”. The Exchange is a recognized senior stock exchange in Canada.
ANM’s shareholders approved the transaction on September 11, 2018. The Company held its shareholders’ meeting on September 12, 2018, at which time all matters relating to the amalgamation (the “ Transaction ”) were approved.
The Exchange has conditionally approved the listing of Halo upon completion of certain conditions and confirmation of closing of the Transaction. Common shares are expected to commence trading under the symbol “HALO” (NEO:HALO).
The Exchange is home to six corporate listings including the recently completed IPO of Canaccord Genuity Growth Corporation (NEO:CGGC) and over 65 exchange traded fund and closed-end fund listings. The Exchange facilitates close to 10% of all equity securities trading in Canada, and once trading, management believes Halo investors will benefit from the Exchange’s free real-time level 2 quotes available across all major data distributors in Canada and abroad. Once listed, Halo investors will be able to get direct access to HALO real-time level 2 quotes or find data distributor symbols for Exchange listed securities on NEO’s website.
The Company is working with the Oregon Liquor Control Commission in connection with the Transaction to obtain all necessary approvals, at which point it expects all closing conditions will be met. Subject to final approval by the Exchange, it is expected that trading on the Exchange will commence during the week of October 1, 2018. The Company will provide a further update via press release prior to listing.
ANM was founded in 2016 in Oregon to focus on the extraction of cannabis oils and concentrates in the burgeoning Oregon market. From a very humble beginning, the company was able to achieve US$3.8MM in revenue in the first years of operation. After developing expertise across multiple extraction techniques, ANM quickly captured 20% share of the wholesale oil and concentrate market generating revenue of US$10.3MM in 2017. Despite the competitive landscape and significant price deflation in Oregon, ANM has been able to bring its monthly net revenue run rate close to US$1MM in August, 2018.
ANM began producing Black Hat Branded, Mojave Branded, and Cannacopia White Label Branded Distillate cartridges earlier this month and has thus completed initial trial shipments of approximately 1,000 grams to Nevada dispensaries. The Company anticipates shipments to ramp materially in the coming weeks and months as it moves to full scale production at its 8,000 sq. ft. facility near the Las Vegas airport. Once fully operational the Nevada facility will have capacity of 15,000 grams per day.
ANM has been working to have its facility in Cathedral City fully operational by calendar year end. First shipments of oil are expected to take place in late October. Once fully operational, the California facility will have a capacity of 30,000 grams per day.
Kiran Sidhu, who will take over the role of Chief Executive Officer of Halo upon the closing of the Transaction, said: “I am very excited that we are expanding into Nevada and California in 2018, which is expected to more than quadruple our annualized revenue run-rate once fully operational. Additionally, we are thrilled to become a publicly-listed company so that new and existing investors can participate in the opportunities ahead of us.”
Upon completion of the Transaction, Halo will be a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Founded in Oregon in 2016, ANM has expertise in all major cannabis manufacturing processes, leveraging proprietary processes and products, and has produced over 2.5M grams of oils and concentrates since inception. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience and is currently expanding its operations with new facilities in Nevada and California. 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, information concerning the completion of the Transaction, the listing of Halo’s common shares on the Exchange, the approval of the OLCC and the objectives and projections of Halo regarding the Oregon, Nevada and California markets.
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, level of activity, performance or achievements of Halo 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.
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: delays in obtaining the necessary approvals from the Exchange or the OLCC; delays in opening new cultivation and manufacturing facilities; higher than expected costs to construct and operate cultivation and manufacturing facilities; adverse changes in the public perception of cannabis; changes in consumer demand for cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets in which the Company operates; 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 and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; 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; risks inherent in the agricultural and retail business; intellectual property risks; risks related to litigation; dependence upon senior management; and the other risks disclosed in the most recent management information circular (including the documents incorporated by reference therein). 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.
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. Key assumptions used herein are that the Transaction will be completed, including on the current terms and anticipated timing, that the OLCC will provide prompt written approval of the transaction and that the Exchange will not withhold or delay the listing of Halo’s common shares. 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.
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CONTACT: Halo Labs
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: HEALTH PHARMACEUTICAL PROFESSIONAL SERVICES FINANCE
SOURCE: Halo Labs
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PUB: 09/25/2018 11:15 AM/DISC: 09/25/2018 11:15 AM