Not for Distribution to U.S. Newswire Services or For Dissemination in the United States
All figures in USD unless otherwise noted
Toronto, Ontario – December 15, 2020 – Halo Labs Inc. (“Halo” or the “Company“) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that sales to dispensaries of the Company’s various branded products continue to grow. The Company reports aggregate monthly sales to dispensaries in excess of $1.8 million, one of the highest totals in the Company’s history and a record total for November. Adding in the sales to dispensaries of Herban Industries OR LLC (“Winberry”) of almost $1.0 million in November, on a pro forma basis, total unaudited sales would be over $2.8 million for the month. This would effectively be a 246% increase over November 2019. The Company anticipates that overall sales will continue to grow as the Company’s product offerings expand further and the planned addition of the Winberry salesforce creates a variety of cross-selling opportunities, including bringing the Winberry premium product lines to California. Winberry’s senior management team, led by founder Dustin Jessup, have taken over sales and distribution efforts of Halo’s product lines to dispensaries in Oregon and California. Mr. Jessup will report to Mr. Sidhu, CEO and Co-Founder of Halo Labs upon the closing of the Winberry transaction, which is expected to occur by the end of December.
Halo posted record results for November, despite that November has historically been a low sales month due to seasonality, marked by less selling days due to Thanksgiving holidays and the typical flood of flower into the Oregon and California market as the fall outdoor and greenhouse harvests come down in late September and October.
Dustin Jessup, founder of Winberry stated, “The synergies between Halo and Winberry are beginning to take shape quickly and we are very enthusiastic about the growth potential for our premium products and the current high-volume offerings of Halo, in Oregon, California and beyond.”
About Halo Labs
Halo is a leading, vertically-integrated cannabis company that cultivates, extracts, manufactures, and distributes quality cannabis flower, oils, and concentrates, and has sold approximately six million grams of oils and concentrates since inception. Halo continues to scale efficiently, partnering with trustworthy leaders in the industry, who value their operational expertise in bringing top-tier products to market. Current growth includes expansion in key markets in the United States, the United Kingdom, and Africa, with planned expansion into the Canadian retail market.
Halo is led by a strong, diverse, and innovative management team, with deep industry knowledge and blue-chip experience. The Company is currently operating in the United States in California, Oregon, and Nevada. The Company sells cannabis products principally to dispensaries under its own brands Hush, Mojave, Exhale and under partnership or license with OG DNA Genetics (“DNA Genetics”), Terphogz, doing business as Zkittlez™ (Zkittlez”) and FlowerShop* (“Flowershop”), a cannabis lifestyle and conceptual wellness brand, in which G-Eazy is a partner and key member of Flowershop*.
As part of the continuous expansion of a Halo in the United States, the company has several grow operations throughout Oregon and California including a six-acre outdoor East Evans Creek grow site in Jackson County, Oregon. The Company is building out Ukiah Ventures, a 30,000-square-foot processing and manufacturing facility including up to an additional five acres of industrial land to expand indoor grow cultivation and also plans with its partner to develop up to 80 acres which would make Bar X the largest grow in Northern California and Oregon.
Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd (“Bophelo”) in Lesotho which holds one of the largest marijuana cultivation license in Africa with a future capacity of up to 495 acres. To further Halo’s global presence, the Company has recently acquired CBPM importation and distribution licensing in the United Kingdom via cannabis supplier, Canmart Ltd (“Canmart”). Halo expects the cultivation and manufacturing operations of Bophelo combined with the importation and distribution capabilities of Canmart to drive growth of a well-positioned business to serve the U.K. market.
The Company also has acquired a range of software development assets, including the technology platforms CannPOS, Cannalift, and more recently signed a deal to acquire CannaFeels. Halo also owns the discrete sublingual dosing technology, Accudab.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com
Contact Information
Halo Labs
Investor Relations
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but are not limited to, statements about Halo’s revenues, combined pro forma results with Winberry, and product expansion in California and Oregon.
By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: unexpected costs or delays in the completion of the Company’s proposed dispensaries and other operation; negative results experienced by the Company as a result of general economic conditions or the ongoing COVID-19 pandemic; delays in the ability of the Company to obtain certain regulatory approvals; unforeseen delays or costs in the completion of the Company’s construction projects; adverse changes to demand for cannabis products; ongoing projects by competitors that may impact the relative size of the Company’s growing operation; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets; risks related to licensing, including the ability to obtain the requisite licenses or renew existing licenses for the Company’s proposed operations; dependence upon third party service providers, skilled labor and other key inputs; and the other risks disclosed in the Company’s annual information form dated April 16, 2020 and available on the Company’s profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.
Third Party Information
This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources.
Financial Outlook
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the sales in the states of California and Oregon in July 2020 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Cautionary Note Regarding Forward-Looking Information and Statements” above and assumptions with respect to market conditions, pricing, and demand. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading ” Cautionary Note Regarding Forward-Looking Information and Statements”” above, it should not be relied on as necessarily indicative of future results.
