Halo Labs Inc. (OTCQX: AGEEF) delivered an operational update in the context of the COVID-19 pandemic as the company continues to grow dispensary sales revenues. These are unaudited preliminary figures.
“We continue to see strong operational performance in Oregon, as reflected by our results. Additionally, the sales velocity of Halo’s branded products indicates that California may be poised to really take off in the coming months. We are preparing for this growth by re-opening Cathedral City operations, staffing up in Ukiah, and growing our California sales force,” comments Andreas Met, Chief Operating Officer and Director of Halo Labs.
In Oregon, Halo said it has managed to maintain a strong growth rate. Halo’s quarter-on-quarter sales for the first 3 months of 2020 compared to 2019 are up by 38%. Total 2020 sales were $5.1 million from January to April of 2020.
Halo is now able to offer customers a wider assortment of cartridges, comprising three distinct types. These include a Mojave™ live resin product, an Exhale cannabis-derived terpene formulation (with an 80% minimum of THC concentration), and a Hush branded botanical terpene offering. Halo now sells over 30 varieties per distillate cartridge brand.
Sales of Halo’s branded products in California continue to grow at an accelerated rate. Halo has just recorded its best month’s sales of Hush and Gilt products in the state. In April 2020 the Company achieved total sales of $342,410 across its product ranges, nearly as much as was sold in all of Q1 2020 ($375,854).
Halo’s anticipates the FlowerShop product range promoted by G-Eazy will only fuel growth at the dispensary level in California. Additionally, the Company plans to retain the award-winning Feel Better team behind FlowerShop to amplify Halo’s product set and in the coming months will launch new products across its Californian operations. These will include edibles (such as gummies, tinctures & chocolates under Emerald Cup winning Outer Galactic Chocolates), as well as the portable nasal inhaler Nasalbinoid product line that Company intends to launch by the third quarter of 2020.
In Lesotho, harvesting of cannabis plants continues in the greenhouses in the company’s Mafeteng cultivation zone. Permanent approval of the total 200-hectare outdoor grow space has been temporarily delayed as a result of the ongoing Covid-19 situation, but the company is optimistic this can be resolved in the near future as Lesotho begins easing restrictions on May 6, 2020. Halo expects to make significant progress in unlocking the total outdoor grow space at Bophelo in the second half of 2020.
Meanwhile, in the United Kingdom Halo said it continues to advance its acquisition of Canmart. Halo recently extended the Letter of Intent to June 21, 2020, to accommodate COVID-19 delays. Halo views the Canmart acquisition as providing the Company with a strategic foothold into the European medicinal cannabis market. Halo will provide further updates on this upon completion of the transaction. The company is envisioning a seed-to-sale business that starts in Lesotho at Bophelo and ends in the United Kingdom with Cannabis-Based Medicinal Products (CBMP’s) distributed to patients through Canmart in the United Kingdom.
Acquisition, Private Placement
Just a few weeks ago, the company closed on a non-brokered private placement of common shares at a price of C$0.11 per share for aggregate gross proceeds of approximately C$425,000. The deal was in conjunction with the acquisition of Nasalbinoid Natural Devices Corp. through its wholly-owned subsidiary, 1245316 B.C. Ltd.