In the last two years, a relatively new player in the North American cannabis game has entered the field and has built the foundation for a robust business behind the scenes. Now it plans to open the doors of this business to the public as it anticipates commencing trading in the coming days, with a planned listing on the NEO Stock Exchange under the symbol HALO.
Founded in Medford, Oregon, Halo Labs (NEO:HALO) is a manufacturer of cannabis oil and concentrates. True to its name, the Company’s science-driven R&D business cultivates cannabis plants and utilizes proprietary technology to process cannabis to extract oils.
Halo recently announced that the NEO Exchange has provided a conditional listing in Canada. This is anticipated to give the Company a great deal of exposure, as it works toward its mandate of becoming the leader in cannabis extraction in the U.S. through the development and manufacturing of leading oil and cannabis products.
After dominating 20% of the market share in the state, Halo Labs began its expanse into Nevada in August and California starting in October 2018, Halo already boasts impressive numbers:
- More than 2.5 million grams produced
- 100,000 customers a month
- Real existing revenue and massively growing:
- $10 million in 2017 (USD)
- $20 million in 2018 (USD)
- $60 million in 2019 (USD) – Projected.
Halo has a consumer-centric focus and markets innovative branded and private label products across multiple product categories. In the first years of its operations, Halo was able to achieve $3.8 million in revenue and managed to secure a healthy wholesale market share. Oregon is a highly-competitive state, with sales predicted to top $1 billion by 2020, though Halo isn’t sweating those details and actually looks to capitalize on this surging growth with a revenue run rate averaging at around $1 million a month.
Looking to grow onward and upward, the next best state to take its business is California, were sales of adult-use cannabis is forecast to reach $2.1 billion by 2020. Halo wants a piece of this action. The Company is preparing to have its facility in Cathedral City fully operational by the end of the year, with the first shipments of oil planned to roll out by late next month. Once operational, the facility is expected to have a capacity of 30,000 grams a day and a potential annual revenue of $90 million. Thirdly on Halo’s radar - the state of Nevada, where cannabis revenue brought in more than $630 millionin sales. Halo has been producing distillate cartridges and recently completed initial trial shipments of around 1,000 grams of Black Hat Branded, Mojave Branded, and Cannacopia White Label Branded products to dispensaries in the state. It’s facility, located near the airport, is said to have a capacity of 15,000 grams a day with a potential annual revenue of $45 million.
In addition to expertise in cannabis oils and concentrates, Halo is also well-versed in all major manufacturing processes: BHP, CO2, PHO and Chemical. The minds behind this expertise are proven and experienced blue-chip managers, from MBAs to PHDs and former public market brokers. The team is led by CEO & Director Kiran Sidhu, whose resume boasts titles such as the audit chair of Canada’s first licensed sales LP Namaste (CSE:N) as well as the former CFO of On Stage Entertainment (Nasdaq: ONST) and the founder and CEO of Transact Network which he sold to the Bancorp (NYSE: TBBK).
The Company’s journey has now led to an amalgamation with Apogee Opportunities Inc., which will become a wholly-owned subsidiary of the Company, and ANM Inc., following which the common shares of Halo will be listed on Aequitas NEO Exchange Inc.
FULL DISCLOSURE: Halo Labs is a paid client of Stockhouse Publishing.