Halo Labs Inc. (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that retail sales of the Company’s Hush™ branded products have been continuing to grow in the state of California and Oregon.
According to the most recent BDS Analytics data, statewide legal cannabis sales in May 2020 reached $290 million across state licensed retailers and delivery services, increasing by fifteen percent from the trailing month and growing fifteen percent compared to May 2019. Concentrate sales were $87.8 million, down 2.6% from May 2019 but up 12% from the prior month. Hush™ vape cartridges sales constitute a majority of Halo product sales in California and have been growing despite the downward category trend from the prior year. The Company’s unaudited wholesale sales in June 2020 were approximately $700,000 up from $416,000 in May 2020.
The Company anticipates 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 80 of approximately 600 dispensaries statewide. Halo is on track to launch one, ten, and twenty piece gummy varieties with multiple flavors and infused pre-rolls as well as achieve a $1,000,000 monthly sales run rate by the end of Q3 2020.
Kiran Sidhu, CEO and Co-Founder of Halo stated, “June sales demonstrate that we have continued to execute on our vision to deliver quality, affordable cartridges to California consumers. ” He continued, “We are gearing up a California launch of our rebranded Hush gummies with new packaging, new flavors, and a new all natural vegan recipe. In addition, our sales reps continue to meet aggressive sales targets with room to grow. We believe each rep may double their average store base to 20 dispensaries, implying both a balanced market penetration rate- less than 30%- and a clear path to a $1M monthly run rate wholesale business. Our Q3 2020 sales target is within striking distance and the North Hollywood dispensary has not even opened yet.”
This year despite COVID-19, Oregon dispensary sales have experienced consistent, double-digit year-over-year growth and in May 2020 experienced an all-time single month high. Cannabis sales in medical and adult-use dispensaries reached $103 million up 15% from the trailing month and 87% year over year. Year-to-date sales in Oregon reached $414 million, growing by 51 percent compared to the same period in 2019 and growing at a higher rate than California.
According to BDS Analytics, retail sales of Hush™ branded concentrates in May 2020 likewise grew-163% year over year- compared to May 2019. In addition, retail sales of Hush™ branded edibles increased, growing at 375% year over year when compared to May 2019. The Hush™ brand ranks #3 in Oregon concentrate category market share and #7 in Oregon edible category market share. The Company believes the BDS Analytics figures may understate market share by not including Halo’s Exhale™ and Mojave™ branded sales of concentrates as well as the Company’s white label sales of concentrates, edibles, pre-rolls and flower. The Company’s unaudited wholesale sales were relatively constant in May and June approximately $1.40M in May and $1.34M in June.
Andreas Met, COO and Co-Founder commented, “We have led further discussions with white label partners to add gummy and sizzurp capacity. We are closer to launching new gummy SKUs in Oregon. We believe these edible program developments could lead us to $1.7M in monthly run rate sales. Other sources of organic growth include expanding pre-rolls to include infused pre-rolls, growing our clone wholesale business, and adding more dispensaries. We are currently selling in 300 Oregon dispensaries, up 36% from January 2020, and the sales force continues to add new customers. Halo is thriving amidst the challenging COVID-19 climate.”
Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows and extracts and processes quality cannabis flower, oils, and concentrates and has sold over 5 million grams of oils and concentrates since inception. Additionally, Halo has continued to evolve its business through delivering value with its products and now via verticalization in key markets in the United States and Africa with planned expansion into European and Canadian markets. With a consumer-centric focus, Halo markets innovative, branded, and private label products across multiple product categories.
Recently, the Company entered into binding agreements to acquire a dispensary in Los Angeles, 3 KushBar branded dispensaries, 5 development permits in Alberta Canada, and Canmart Limited which 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 management team with deep industry knowledge and blue-chip experience. The Company is currently operating in the United States in California, Oregon, and Nevada while having an international presence in Lesotho within a planned 200-hectare cultivation zone via Bophelo Bioscience & Wellness (Pty) Ltd. as well as planned importation and distribution in the United Kingdom via Canmart.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
By Michael Berger for technical420.com