Halo Labs' wholly-owned subsidiary PSG Coastal Holdings, LLC (“PSG”) together with Green Matter Holding, founded a real estate holding company on August 18, 2020 each with 50% ownership. The newly created company, Lake County Natural Health, completed the purchase of the Bar X Ranch in Lake County, California from an unrelated party.
Halo’s partner, GMH is the parent company of Humboldt Standard, a Humboldt-based, sustainable company, currently cultivating twenty-four acres of licensed outdoor cannabis in Northern California, manufacturing concentrates in Oakland, and distributing award-winning strains throughout the California market.
"Encompassing 1,600 acres (647 hectares), the Bar X Ranch boasts clean air quality and abundant natural resources in particular water, arable flat land and good soil," the team with the company explains. "The property address is 20333 S. State Highway 29, Middletown, Lake County, CA. It includes two houses, two barns, and ample power for the intended grow operations. Prior to the purchase, LCNH determined that the farm has the capacity to grow up to 80 acres (32 hectares) of cannabis. When Bar-X ranch is fully operational, it will be the largest cannabis cultivation operation in the region."
LCNH plans to immediately commence the buildout of Bar X Ranch, with a target outdoor grow of at least 60 acres (24 hectares), employing sustainable and organic practices and with future plans for up to 10 acres (4 hectares) of greenhouses. Early activation approval from Lake County has already been initiated and is expected over the next 90 ninety days.
"LCNH is planning for two full grow cycles per calendar year starting in early 2021," they further explain. "With planting in March and June, we can expect harvests in late May/early June and late September/early October. For both harvests, the Company intends to plant GMH’s genetics, mainly derived from tissue cultures, as well as additional genetics owned by Halo and other Halo-licensed partners (i.e. OG DNA Genetics and Zkittlez)."
At a planned size of 60 acres (24 hectares) LCNH estimates an annual harvest of up to 240,000 pounds (108,862 kilograms) of dried and cured cannabis at up to 4,000 pounds per acre (4,483 kilograms per 10,000 square meters). The current average wholesale price of outdoor cannabis is the U.S. is $835 per pound ($1837 per kilogram)2. LCNH anticipates that the cannabis grown at the Bar X Ranch should be sold at even higher prices, given the historical sale prices of GMH cannabis and GMH’s affiliations with Connected Cannabis.
Kiran Sidhu, Co-Founder and CEO of Halo explains the value of the purchase:
"We are a company where the "Think Big" genome is in our DNA. The LCNH partnership with GMH at the Bar X Ranch represents another evolutionary step in our history. When added to Halo’s cultivation portfolio that includes a planned large indoor grow in Ukiah, California in partnership with Zkittlez (“UVI”), the Company will no longer be tied to third-party cannabis cultivators in California. The Bar X Ranch partnership plays an important role in achieving Halo's strategy of verticalization in California. Halo is partnering with GMH, one of the most highly-respected and profitable growers in California. GMH’s state-of the-art cultivation skill set will add significant value to Halo’s other cultivation operations at East Evans Creek in Oregon, UVI in California and Bophelo in Lesotho."
Jedediah Morris, Co-Founder of Green Matter praises the partnership with Halo: "Halo’s ability to quickly arrange both mortgages (up to $7.1 million) for LCNH, combined with their strengths in regulatory, compliance and finance, complement GMH’s strengths as experienced California cannabis cultivators. GMH is well-versed in the local area and the growing conditions in Lake County, CA. GMH comes to the table with a proprietary library of cannabis genetics, including well-known, award-winning, market-tested strains. We are looking forward to growing and distributing cannabis in partnership with Halo at an even larger scale. Bar X Ranch is three times the size of our current portfolio of California cultivation sites."
Halo is in the process of developing one of the largest cannabis grows on the African continent to supply the burgeoning UK, EU and Asian markets with Bophelo. The Company anticipates Bar X Ranch will play a similar role in the California market. Halo believes that LCNH will supply continuous, consistent, diverse and ample quantities of flower, pre-rolls and concentrates to a growing list of dispensary clients, as well as the dispensaries that Halo intends to operate.
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