Halo Collective has acquired a 44% ownership interest in Triangle Canna, the parent company of Farm Opco (as defined herein). As previously announced in September 2020, the Company partnered with Green Matter Holding to purchase 1,600 acres of farm property in Lake County, California. The Farm was purchased by Lake County Natural Health, which is owned 50% by the Company's wholly-owned indirect subsidiary, PSG Coastal Holdings LLC and 50% by Green Matter.
Triangle Canna and the Farm OpCo are in the process of submitting applications to the California Department of Food and Agriculture for up to 330 California state cannabis cultivation licenses, and have already submitted an application to Lake County, California, for an "early activation" cannabis cultivation permit which, upon receipt, would entitle Triangle Canna to cultivate cannabis on up to 80 acres of the Farm.
Triangle intends to complete a financing by filing an offering statement under Regulation A+ to raise up to $75M, subject to qualification by the U.S. Securities and Exchange Commission. Triangle also intends to pursue a listing of its common stock on a recognized North American stock exchange following the completion of its proposed Regulation A+ financing.
Kiran Sidhu, CEO of Halo Collective commented: "When fully operational the Farm will be the largest mixed use cannabis growing operation in California1. We expect that Triangle will become a significant cultivation player in the United States." Sidhu continued, "Halo will benefit from its relationship with Triangle as it will provide the Company with additional access to high quality cannabis for our expansion plans in California, to ensure a full, steady supply for the FlowerShop* product line and Halo's planned three Los Angeles dispensaries. The Company expects to also derive meaningful value from its ownership of Triangle common stock, the rents paid to LCNH, and land appreciation as the Farm is developed and permitted."
Subject to the receipt of the early activation license, Triangle Canna plans to cultivate two harvests of 60 acres of premium outdoor cannabis flower per calendar year. In 2021, Triangle Canna plans to initially harvest 10 acres in the summer, followed by a re-plant of 60 acres of full-term premium outdoor plants. The expected yields of the summer harvest are in the range of 800-1,000 pounds of finished flower per acre, while the full-term harvest yields are expected to range between 1,800-2,200 pounds per acre. Triangle expects to harvest over 100,000 pounds of high-grade flower in 2021. Cannabis Benchmarks reported that the average spot price for outdoor grown flower in the US was $800/lb in the week ending February 12, 2021.2
In 2022, Triangle Canna plans to add 20 acres of state-of-the-art greenhouses which will have the anticipated capacity to harvest an additional 64,000 pounds of finished flower annually on a perpetual basis. Cannabis Benchmarks reported that the average spot price for greenhouse grown flower in the US was $1,306/lb in the week ending February 12, 2021.3
In addition to the finished flower outputs described above, Triangle Canna plans to produce trim that could be used for concentrates or pre-rolls, which could add up to an additional 10,000 lbs and 80,000 lbs of biomass respectively in 2021 and 2022.