Halo Labs has acquired Outer Galactic Chocolates (OGC) in a deal which gives the company a licence to produce infused and edible cannabis products.
The acquisition marks an effort by Halo to further tap into the growing edibles market as it aims to expand its portfolio variety.
The US cannabis extraction company exchanged its common shares for OGC in a deal worth approximately CAD 238,000 ($179,000).
OGC holds a Type N manufacturing licence in Mendocino County, California. Through the acquisition, Halo will gain these rights and will be permitted to cannabis production and related activities, including the packaging and labelling of all related manufactured finished goods.
Whilst the licence does not allow extraction, Halo will utilise its Type 7 licenced facility in Cathedral City, California. Halo says it will have reduced costs as a result of the deal through the elimination of monthly equipment and licence rental fees.
Upon completion of the transaction, Halo intends to launch its Hush edible gummies and elixirs in THC and multiple THC/CBD formulations, as well as distribute OGC’s branded chocolate edibles.
The strain specific gummies are vegan, gluten-free and contain no artificial flavours or colours.
OGC founder Jeff Steward will help develop the formulations for the new Hush line of gummies, as well as future products. He said: “It’s great to offer the public a range of the healthiest edible options, crafted from the finest ingredients, with artisanal care. I look forward to working with Halo to reach more consumers and patients with high-quality and delicious cannabis edibles.”
Kiran Sidhu, Halo CEO and co-founder, added: “Obtaining a Type N manufacturing license 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.”
OGC will now become a wholly-owned subsidiary of Halo.
© FoodBev Media Ltd 2020