Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) announces that in September, its Oregon business unit (“ANM”) will have a record level of monthly sales orders totaling approximately $1.8 million (all figures are USD unless stated otherwise), driven by estimated vape cartridge sales of $539,000. Halo believes that this spike in sales orders partially originates from consumers stockpiling vape products in case a ban is imposed by Oregon. Not all of these orders will be filled in September. Actual revenue will be lower than $1.8 million in September in Oregon and is estimated to be $1.4 million. As previously reported, for the first six months ended June 30, 2019, average unaudited monthly revenues in Oregon were $948,579. Most of the shortfall between sales orders and revenue should be recognized as revenue when shipments are made in October. Halo believes it has sufficient inventory on hand in Oregon to fulfill this level of orders should it continue.
In addition, Halo expects a record harvest on the six-acre outdoor Evans Creek grow site of approximately 15,000 pounds (6,800 Kilos) of dry weight, usable cannabis as a result of favorable climate conditions throughout the Emerald Triangle. Given the uncertainty surrounding the vaporizer market in Oregon, the Company plans to dedicate 7,500 pounds (3,400 kilos) of the harvest to flower sales. Halo has received deposits of $600,000 for 2,400 pounds on flower sales at an average price per pound of $500. The Company expects incremental sales from flower over the next 4 months of approximately $1 million per month at an estimated gross margin of 60%. These sales will help offset revenue losses from any potential ban or restrictions on vape cartridge sales imposed by the state of Oregon. And if a ban is not imposed, the Company would anticipate sales in Oregon to continue to rise.
In addition, Halo has launched a direct marketing campaign to every licensed dispensary in Oregon, highlighting the benefits of the DabTabsTM product line over conventional vape cartridges. The Company is planning to launch a similar campaign to California dispensaries in the next two weeks.
Currently, Halo has approximately 80,000 grams of natural live resin in stock at its Medford, Oregon facility and has contracted with NectarTM for approximately $1 million of fresh cannabis material which will be converted into live resin over the next three months. The concentrate business is approximately 40% of the Company’s overall Oregon revenues year to date. Halo believes it’s one of the largest suppliers, if not the largest supplier, of concentrates to dispensaries in Oregon based on data obtained from BDS Analytics and state records. The Company does not expect dabs and the DabTabsTM product line to be affected by any potential bans imposed by the State of Oregon on vaporizers or vaping products.
“I encourage the state of Oregon to focus its actions and messaging to curtail black market activities and not to impose a ban on licensed manufacturers. It is our belief that such a ban will just encourage consumers to move their purchasing to the black market and could potentially lead to more health issues,” commented Kiran Sidhu, Halo’s CEO and Co-Founder.
Halo is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Halo is a global leader in cannabis oil and concentrates, having produced over 4.5 million grams of oils and concentrates since inception. The Company has expertise across all major cannabis manufacturing processes, leveraging a variety of proprietary processes and products. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently operating in California and Oregon, as well as in Nevada with our partner Just Quality, LLC, and in Lesotho with the Bophelo strategic partnership. With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
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 is not limited to, statements regarding estimated unaudited revenues, sales orders and vape sales in Oregon, harvest expectation, projected harvest weights, percentage of flower yielded from the harvest, estimated flower sales and gross margin, DabTab™, quantities of live resin and contracts for biomass with key suppliers.
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. 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.