All figures in USD and as per BDS Analytics, Inc. unless stated otherwise
TORONTO, Jan. 12, 2021 /CNW/ – Halo Labs Inc. (“Halo” or the “Company“) (NEO: HALO) (OTCQX: AGEEF) (Germany: A9KN) announces that BDS Analytics, Inc. (“BDSA”) has reported record year over year retail sales growth in November 2020 of Halo products in Oregon’s recreational cannabis market.
Oregon retail sales reached $89.9 million in November 2020. This represented 32% year over year growth when compared to November 2019 retail sales. Sales between January and November 2020 surpassed $1 billion, exceeding analysts’ forecasts for Oregon for the entire year1. Amidst this strong growth in Oregon, Halo outperformed the market average across multiple product categories.
The concentrates category, comprised of cartridges, live resin, shatter, and other dabbable products, grew 46% year over year (November 2020 compared to to November 2019). Halo brands2,3 across the concentrates category posted 242% retail sales growth in the same time period- more than 5 times the market average.
In cartridges, the largest concentrates’ segment, Halo’s brand Hush posted sales growth of 363% with reported retail sales of $527,095 when compared to November 2019. Winberry Farms cartridges also demonstrated strong growth outpacing November 2019 sales by 168% with reported retail sales of $432,013 in November 2020. Hush and Winberry Farms were in the top 10 best selling cartridge brands (ranked #4 and #8 respectively) and combined were third in cartridge sales statewide.
Overall Hush posted 131% year over year growth across all concentrates segments when compared to November 2019 sales. Hush also recorded the most sales of shatter measured both by volume and by dollars.
Meanwhile, Halo brands performed well in other attractive product categories. November 2020 flower and pre-roll category sales were $39.9 million and $8.2 million respectively statewide. Together these segments captured 52% of all retail cannabis sales in Oregon. However, infused pre-rolls showed the highest growth of any flower related segment (up 223% YOY from $323,657 to $1.05 million in November 2020). Halo brands Hush and Winberry Farms have both launched strong SKUs in this rapidly expanding segment. The Hush Hybrid Infused Pre-Roll 2-Pack was the top selling SKU by volume and dollars while Winberry Farms recorded the seventh highest sales of all brands in the infused preroll segment.
Edibles generated over $10.8 million in sales in November 2020, up by nearly 24 percent compared to November 2019. With multiple offerings in this growing category, Hush products again outpaced the market in year over year growth. Hush edibles grew by a margin of 187% (from $96,068 to $275,749), entering the top 10 for best selling edibles brands in Oregon.
Dustin Jessup, Chief Revenue Officer of Halo stated, “Synergies created through our pending acquisition of Winberry Farms have positioned Halo to become the market leader in Oregon. Our growth is far outpacing that of our competitors, as the November BDSA report shows.”
All statistics included in this press release are defined in the November 2020 BDSA data – the leading provider of market research solutions for the global cannabinoid industry from forecasts to trends.
|2||Hush, Winberry & Exhale brands|
|3||Halo manages the operations of the production facility and distribution facility of Herban Industries OR LLC (doing business as Winberry Farms) and has entered into an agreement to acquire the Winberry Farm assets.|
About Halo Labs
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 evolve its business and scale efficiently, partnering with trustworthy leaders in the industry, who value the Company’s operational expertise in bringing top-tier products to market. Current growth includes expansion in key U.S. markets, the United Kingdom and Africa, with planned expansion into the Canadian retail market.
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 U.S. in California, Oregon and Nevada. The Company sells cannabis products principally to dispensaries under its own brands Hush, Mojave, Exhale, Winberry Farms and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™) and FlowerShop, a cannabis lifestyle and conceptual wellness brand in which G-Eazy is a partner and key member.
As part of continued expansion and vertical integration in the U.S., Halo boasts several grow operations throughout Oregon and California. In Oregon, the Company has a combined seven acres of outdoor cultivation, including East Evans Creek, a six-acre grow site in Jackson County, and Winberry Farms, a one-acre grow site in Lane County. In California, the Company is building out Ukiah Ventures, a planned 30,000-square-foot indoor grow, processing and manufacturing facility, including up to an additional five acres of industrial land to expand. Recently, Halo partnered with Green Matter Holding (“GMH”) to purchase Bar X Ranch in Lake County, with plans to develop up to 80 acres of cultivation, which would comprise the largest grow in Northern California.
Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd (“Bophelo”) in Lesotho, which holds one of the largest marijuana cultivation licenses in Africa with a future capacity of up to 495 acres. To further Halo’s global presence, the Company recently acquired CBPM importation and distribution licensing in the United Kingdom via cannabis suppliers Canmart Ltd (“Canmart”). Halo expects the cultivation and manufacturing operations of Bophelo, combined with the importation and distribution capabilities of Canmart, to drive growth of a well-positioned business to serve the U.K. market.
The Company has also acquired a range of software development assets, including technology platforms CannPOS, Cannalift and more recently CannaFeels. Additionally, Halo owns the discrete sublingual dosing technology Accudab.
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 are not limited to, statements about the sale of Halo’s products and prospects in Oregon and the Company’s proposed acquisition of the assets of Winberry Farms. Completion of the acquisition by the Company of the assets of Winberry Farms is subject to satisfaction or waiver of closing conditions, including receipt of regulatory approval from the Oregon Liquor Control Commission, and such acquisition is expected to close within three to six months.
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, 2020and 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.