Halo Labs Inc. (“Halo” or the “Company”) (NEO:HALO, OTC:AGEEF, Germany:A9KN) is pleased to announce that it has entered into a binding Letter of Intent to secure a purpose built hemp processing facility in Southern Oregon (the Transaction) to expand the Companys production capabilities into manufacturing CBD isolate and distillate. Production at the facility is expected to start in the 3rd quarter of 2019.
At full capacity, Halo will be able to process approximately 10,000 kilograms of hemp per month, which the Company expects will yield 700 to 900 kg of high-grade distillate or isolate and is projected to result in monthly revenue in excess of US$3.5 million at current wholesale prices.
Halo is already a leader in the extraction of cannabis crude oil, distillates, and resins. The Company’s primary proprietary brands, Hush„¢ and Gilt„¢, are available to consumers in California, Nevada and Oregon. As well, the Company provides its cannabis oils on a white label and business-to-business basis to multiple customers primarily in California. This proposed entry into the CBD hemp market positions Halo to leverage current manufacturing and distribution capabilities to expand the Companys own Hush„¢ and Gilt„¢ product suites as well as pursue additional white label opportunities.
Halo is poised to capitalize on significant growth in the CBD products space. The recent passage of the US Farm Bill that excludes hemp from the Controlled Substances Act, permits CBD derived from hemp products to be imported and exported across U.S. state lines. In addition, drug chain retailers are entering the CBD