Not for Distribution to U.S. Newswire Servicers or For Dissemination in the United States
All figures in USD and as per BDS Analytics unless stated otherwise
Toronto, Ontario – September 30, 2020 – Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that its wholly-owned distribution subsidiary, Mendo Distribution and Transportation LLC, has commenced sales in California of its new 10-piece, cannabis-infused gummies line, under the Hush brand. The product line offers gummies that are vegan, gluten-free and strain-specific. Developed in collaboration with Emerald Cup award-winning confectioner, Jeff Stewart, the gummies are available in six flavors: Marionberry, Watermelon, Strawberry, Peach, Pineapple and Raspberry. Each gummy contains 10 milligrams of full-spectrum, strain-specific THC, a total of 100 mg per package.
According to BDS Analytics, in July 2020 the ingestibles category generated $50.8 million in monthly sales in California, growing 21% when compared to July 2019. Edibles comprised 86% of the ingestibles category revenue in July 2020, growing 32 percent when compared to July 2019. The ten-piece gummy category generated $14.3 million in monthly revenues in California in July 2020, growing at 22.6% when compared to July 2019. `The average net wholesale sales price of a ten-piece gummy package in California from a distributor to a dispensary in July 2020 was $6.78.
Halo has released the 10-piece, cannabis-infused Hush gummies at a $6.50 wholesale list sale price to dispensaries. The Company’s estimated gross margin at the $6.50 wholesale price is expected to be at least 50%, based on the Company’s current bill of materials.
Halo is currently producing approximately 51,500 10-piece gummy units per month at the facility operated by the Company’s wholly owned subsidiary Outer Galactic Chocolates LLC. Within the next 45 days, the Company expects to double production to 103,200 units per month. Halo is targeting having this product line available for sale in up to 200 California dispensaries over the next 60 days.
Andreas Met, Co-Founder and COO of Halo comments:
“This is one of the most exciting new product launches at Halo since we first started the Company. We have a new bold look thanks to G-Eazy and the team at Feel Better and a great-tasting products thanks to Jeff Stewart. Halo is manufacturing and distributing full-spectrum, high quality gummies that produce the desired effects to satisfy the wants and needs of the choosy California consumer.”
This is the first of several Halo new product launches the Company has planned in both Oregon and California in the near future. In addition to new Hush branded products planned for the fourth quarter of 2020, Halo is also collaborating with both Feel Better, LLC (dba Flowershop*) and Zkittlez to launch new innovative, proprietary products. In the fourth quarter of 2020, Flowershop and Halo plan to launch a Budvase of flower and a Bouquetpack of infused prerolls. Halo and Flowershop* also expect the new Flowerpuff vape and Juicedrop edibles to launch in the first quarter of 2021.
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 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. The Company also has acquired a range software development assets, such as the technology platforms CannPOS, Cannalift, and more recently signed a deal to acquire CannaFeels. Halo also owns the inhalation technology Acudab.
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 cannabis based products for medical use 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 is not limited to, statements regarding Halo’s launch of Hush edibles in California and the anticipated launch of other 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: changes in general economic, business and political conditions, including changes in the financial markets; 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.