Not for Distribution to U.S. Newswire Servicers or For Dissemination in the United States
All figures in USD and per BDS Analytics unless stated otherwise
Toronto, Ontario—August 24, 2020 – Halo Labs Inc. (“Halo” or the “Company“) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that retail sales of the Company’s Hush™ branded products continue to grow in the states of California and Oregon. In July, aggregate unaudited total revenues were approximately $2.18 million. Unaudited revenues from sales to dispensaries were $1.94 million, the largest monthly figure in the Company’s history. Unaudited revenues of $0.24 million from sales of California bulk distillate from Coastal Harvest make up the balance.
According to BDS Analytics (“BDS”), statewide legal cannabis sales in June 2020 reached $291.5 million across state-licensed retailers and delivery services–flat from the trailing month, and (up) +17.2% percent compared to June 2019. Concentrate sales were $89.6 million, (down) -0.5% from June 2019, but (up) +2.1% from the prior month. Hush™ vape cartridge sales constitute a majority of Halo product sales in California, and have been growing as distribution expands and consumers adopt the product. The Company’s California unaudited monthly revenues in July 2020 were approximately $0.8 million, a +45.3% increase over the previous month.
The Company anticipates that sales of Hush™ branded products will continue to grow as the California menu expands and the recently amplified sales force onboards new dispensary customers. Halo’s Hush™ branded products are now in 104 of approximately six-hundred dispensaries statewide. Halo is on track to launch one-, ten-, and twenty-piece gummy varieties with multiple flavors, and infused pre-rolls by the end of third quarter of 2020.
According to BDS, in June 2020, Cannabis sales in Oregon in adult-use dispensaries were $88.0 million, down 4.2% from the trailing month, and up +41.5% year-over-year in June.
According to BDS, retail sales of Hush™ branded concentrates in June 2020 grew at +261.6% year-over-year, compared to June 2019. In addition, retail sales of Hush™ branded edibles increased, growing at +532% year-over-year, when compared to June 2019. The Hush™ brand ranks #3 in Oregon’s concentrate category market share, and #7 in Oregon’s edible category market share. The Company believes the BDS figures may understate market share by not including sales of Halo’s Exhale™ and Mojave™ branded concentrates, as well as sales of the Company’s white label concentrates, edibles, pre-rolls and flower. The Company’s Oregon unaudited monthly revenues in July 2020 were approximately $1.38 million, a +3.3% increase over the previous month.
Kiran Sidhu, CEO and Co-Founder of Halo stated, “Our California and Oregon operations are growing and the sales trend is strong, as we expand the assortment and bolster distribution channels—even as the Covid-19 pandemic challenged the economy from mid-March 2020. With harvest only eight weeks away, we are poised to grow even more rapidly as we debut and distribute fresh material and new product lines.”
Halo is a leading, vertically-integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils, and concentrates, and has sold approximately 1.2 million grams of flower and pre-rolls in 2020, as well 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 and Africa, with planned geographic expansion into U.K. and Canadian markets. With a consumer-centric focus, Halo markets value-driven, branded, and private-label products across multiple product categories.
Recently, the Company acquired a dispensary permit in Los Angeles, and a thirty-thousand square foot cannabis processing and wholesale facility in Ukiah, California. The Company plans to acquire three KushBar™ branded dispensaries, five development permits in Alberta Canada, and Canmart Limited, a company that holds wholesale distribution and special licenses, allowing the import and distribution of cannabis-based products for medicinal use (CBPM’s) in the United Kingdom.
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. Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd, in Lesotho under a 200 hectare license, and is planning importation and distribution of CBPM’s into the United Kingdom via Canmart.
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, brand performance and products 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.
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.