Halo acquires Outer Galactic Chocolates in US

US-based cannabis extraction company Halo Labs has completed the acquisition of Outer Galactic Chocolates (OGC), which holds a Type N manufacturing licence in Mendocino County, California.

As part of the deal, Halo acquired OGC by exchanging its 1,981,825 common shares worth C$237,819 ($179,172) based on the closing price of the Halo shares on 31 July.

The Type N licence allows manufacturers to conduct cannabis production and related activities, including packaging and labelling.

Halo co-founder and CEO Kiran Sidhu said: “Obtaining a Type N manufacturing licence in California for the production of infused and edible products is a step in increasing Halo’s product offering in this high growth category.

“As we develop new lines with the award-winning expertise at OGC, we will support the expanded distribution of OGC-branded chocolates to southern California. We look forward to expanding all of our product offerings in California, one of the world’s largest cannabis markets.

“As with our DNA Genetics and TerpHogz partnerships, this acquisition of OGC and collaboration with its management allows us to add value to the Halo product portfolio, by providing more high-quality and award-winning products to our dispensary partners.”

With this acquisition, Halo will be able to produce infused and edible products, as well as the packaging of all related finished goods.

It intends to distribute its Outer Galactic Chocolate branded chocolate edibles from the licensed Type N facility in Ukiah and launch its Hush edible products gummies and elixirs in THC and multiple THC/CBD formulations.

Hush will be rolled out in six strain-specific flavours, including watermelon, pineapple and raspberry.

Halo will retain OGC founder Jeff Stewart, who will serve as a subject matter expert and consultant on edibles and gourmet chocolate production.

The company’s indirect wholly owned subsidiary OGC Merger Sub will be merged into OGC to effectuate the acquisition.