- Product authentication company YPB Group has signed a Master Supply Agreement with Canadian Hemp company Halo Labs
- This agreement will see YPB provide its authentication solutions and Connect consumer engagement platform to Halo
- The initial term is for a 12 month period with automatic renewal after another 12 months
- Halo will start deploying YPB’s technology towards the end of 2019’s third quarter
Product authentication company YPB Group has signed a Master Supply Agreement (MSA) with Canadian Company Halo Labs.
Under this agreement, YPB will provide Halo with its authentication solutions and its ‘Connect’ consumer engagement platform.
The initial term for the MSA is 12 months with automatic renewal for a further 12 months unless either company gives notice of a non-renewal.
YPB’s revenue under the MSA will be two-fold: authentication tracer and labels will be charged on a per unit volume basis, and its Connect consumer technology will be provided on a software as a service basis and be charged monthly.
The volume pricing component will allow YPB to participate in Halo’s growth but a reliable estimate of the contract value cannot be provided due to Halo’s growth pace.
Halo will start deploying YPB’s technology towards the end of Q3 2019.
Halo is a hemp grower and processor with specific knowledge in the oils and concentrates sectors. It has a significant presence in America. So far it has produced over four million grams of oils and concentrates.
Initial operations began in Oregon but it has expanded its production and sales capacities to both California and Nevada.
YPB was founded in 2011 by serial entrepreneur John Houston after he envisioned that brands needed protection against counterfeits and could be used as a unique way to connect to customers.
He developed the Connect technology in 2015 for a way for brands to engage with customers.
It has expanded into multiple markets such as Cannabis Confirmed and Impact International in which YPB’s technology is applied to Australian export products heading to China.
YPB Executive Chairman John Houston is pleased that the company will be helping a large-scale hemp company like Halo.
“I’m delighted YPB will be assisting Halo in ensuring its investment in brand building is not damaged by fakes and is developing the value and loyalty of its consumer base through personalised engagement,” he said.
“After an initial flurry in H2 2018, our momentum in cannabis had slowed for a number of reasons but cannabis remains a key vertical and major opportunity for YPB,”
“This new relationship with Halo is the first evidence of our rekindled momentum in the sector,”
YPB shares are up 26.7 per cent to sit at 0.7 cents each, as of 1pm AEST with a market cap of $5.501 million. Halo shares are currently trading for USD$0.42 on the Canadian stock exchange.