Halo Labs Archives - Green Market Report

Debra BorchardtMay 5, 2020

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.

Oregon

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.

California

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.

International Efforts

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.

StaffMay 14, 2019

CannTrust

CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) reported that its quarterly revenue rose 115% to $16.9 million versus last year’s $7.8 million for the same time period. 67% of the revenue came through the medical channel and 33% through the recreational channel for the quarter ending March 31, 2019. The net income for the quarter was $12.8 million, a big improvement sequentially over the loss of $25 million reported in the fourth quarter of 2018.

“The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, CannTrust CEO. “With the successful closing of our equity offering providing gross proceeds of US$170 million, we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year.”

CannTrust report that it sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram. The company said that cost of sales per gram sold and cash cost per gram sold were $3.03 and $2.77, respectively, compared to $3.08 and $2.94, respectively, in the fourth quarter of 2018. The total active patient count reached 68,000 on March 31, 2019, a 70% increase over the first quarter of 2018

Looking Ahead

The company acquired 81 acres of land in British Columbia for outdoor cultivation with a potential yield of 75,000kg of production in 2019, subject to regulatory approval. CannTrust obtained all necessary permits from the Town of Pelham for the construction of the 390,000 square foot Phase 3 expansion.

The company is developing innovative products for the expected legalization of new product formats in Canada later in 2019. These products include vape pens, beverages, confectionaries, and healthcare products. CannTrust said it is also making strategic investments into its operational capacity to prepare for expected increases in demand for its products.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported that its third-quarter 2019 net revenue was $10 million, a 382% increase from $2.1 million in Q3 2018 and a 29% sequential increase from the second quarter. Still, the company delivered a net loss of $7.1 million for the quarter, almost double the net loss of $3.3 million for the same time period in 2018.

“Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company, Inc.

The company said that across Canada, sales revenue from recreational markets increased 63% between FYQ22019 and FYQ32019. Over the quarter, Supreme said it worked with MediPharm Labs Inc. (TSXV: LABS), a leading cannabis extractor, to produce its premium oil products line. As announced in November 2018, under MediPharm and Supreme Cannabis’ three-year contract, 7ACRES will supply a minimum of approximately 1,000 kg of high-quality cannabis trim per year as input to MediPharm for the extraction and production of premium, high-terpene cannabis oil products.

Halo Labs

Halo Labs Inc. (AGEEF) reported first-quarter 2019 revenue of $8,718,503 versus $2,168,976 in first quarter period in 2018. The company is projecting nearly $50 million in revenue and 332 percent organic growth over 2018. The company also delivered a $2.9 million net loss for the quarter, higher than last year’s net loss of $1.8 million for the same time period.

The revenue increased 302% over the year with first-time contributions from Coastal Harvest and HLO Ventures the California and Nevada operations, respectively. There was also a 32.8% increase in revenues at the Oregon operation known as ANM, Inc. ANM revenues were $2,879,769 in the quarter versus $2,168,976 during the same period in 2018. Coastal Harvest commenced its first year with revenues of $5,324,369, while HLO posted inaugural revenues of $514,365.

William SumnerApril 4, 2019

It’s time for your Daily Hit of cannabis financial news for April 4, 2019.

On the Site

Merida Capital

Cannabis private equity fund Merida Capital Partners has launched its third fund for $200 million, which will focus on concentrated, high conviction investments in leading companies in the cannabis ecosystem. The company said that since launching its first fund in late 2016, it has deployed nearly $80 million across its first two funds and now has more than $125MM under management.

McConnell & Wyden Pen Letters To US Federal Banking Finance Regulators Over Financial Services For Hemp Producers

The letters were sent to the U.S. Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration, the Federal Reserve System and the Office of the Comptroller of the Currency. The letters read as follows.

Marijuana Stocks Look Frothy, But Aurora Stock Is Well-Prepared

Over the long run, I remain net bullish on legal marijuana. However, my optimism for the sector doesn’t cloud reality. I can see as plain as daylight that the honeymoon phase is over. Now, companies like Aurora Cannabis (NYSE: ACB) must provide the goods. If not, ACB stock could face serious trouble.

In Other News

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) announced that it has entered into a brokered private sale of up to 500,000 convertible debentures of the company, at a price of $1,000 per debenture. The sale is expected to raise $500 million and will be closed in five tranches over a period of no more than 18 months. The first tranche is expected to close on May 1, 2019. Proceeds from the sale will go towards general corporate purposes and working capital.

Halo Labs

The cannabis extraction company Halo Labs Inc. (OTC: AGEEF) announced that it has raised $18,143,000 in a convertible note offering. The proceeds of the offering will go towards leasehold improvements, the purchase of extraction equipment, working capital and general corporate purposes.

Aurora Cannabis

Aurora Cannabis Inc. (NYSE: ACB) announced that it has appointed Carey Squires as its Executive Vice President of Corporate Development and Strategy. Squires recently served as Managing Director and Co-Head of Equity-Linked Capital Markets for BMO Capital Markets. In his new role, Squires will focus on developing strategic partnerships, growth initiatives, and investor development.

Body and Mind Reports Slumping Sales as New Dispensaries Come Online

Planet 13’s Financial Numbers Down Across the Board for 2022, Losses Jump 152%

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Halo Labs Archives - Green Market Report

Halo Labs Reports Rising Sales In Oregon, California