Company Name: Halo Labs
Company Website: https://halocanna.com/
Contact Name: Sarah Cichy
Contact Email: email@example.com
AGEEF - OTCQX
Halo Labs Celebrates Record First Quarter 2019 Revenue –
Fastest Growing Organic U.S. Public Company
Key Figures Mark Company's Journey from Backyard Chicken Coop to Global Cannabis Powerhouse
For Immediate Release - With the results of financial and operational performance in for Q1 2019, Halo Labs Inc. ("Halo" or "The Company") is thrilled to see significant growth, boasting a 302 percent per year increase. With a first quarter 2019 revenue of $8,718,503 (corresponding revenue in first quarter period in 2018: $2,168,976), along with dynamic brand innovation and product launches, the report indicates success for the remainder of 2019, with The Company projecting nearly $50 million in revenue and 332 percent organic growth over 2018.
Unlike large cannabis companies expanding through high-profile international mergers and acquisitions, Halo Labs has seen significant organic growth in its 3-year tenure, starting from operations out of a backyard chicken coop using highly volatile extraction techniques to garnering global attention and success for their innovation and adaptability to changing market trends. From humble beginnings in that backyard experimental space, they now offer brands and product solutions for every sector of the green market. Halo's stock is currently trading at a highly discounted price compared to competitors, marking it great value for investors in the current market.
Organic Growth Highlighted Through Q1 Financial Figures
Through purely organic growth, Halo Labs' success in burgeoning markets can be seen through the company's Q1 2019 Financial and Operational Highlights:
Halo ranks 2nd among U.S. plant-touching cannabis stocks, based on revenue growth.
Revenues in the three months ending March 31, 2019 were $8,718,503 (three months to March 31, 2018: $2,168,976), a 302% year on year increase, explained by first time contributions from Coastal Harvest, LLC ("Coastal Harvest") and HLO Ventures (NV), LLC ("HLO"), our California and Nevada operations, respectively; as well as a 32.8% increase in revenues at ANM, Inc. ("ANM"), our Oregon operations.
ANM revenues were $2,879,769 in the three months ending March 31, 2019 in comparison with $2,168,976 during the same period in 2018. Coastal Harvest commenced its first year with revenues of $5,324,369, while HLO posted inaugural revenues of $514,365.
Cost of goods sold were $6,273,930 (three months ending March 31, 2018: $2,183,569) directly associated with the increase in revenues. Gross margin was 28% before an unrealized loss on the growth of biological assets in the three months ending March 31, 2019. As standalone businesses, ANM achieved a gross margin of 8.0%; Coastal Harvest a gross margin of 39.7%; and HLO a gross margin of 3.9% in the three months ending March 31, 2019.
Margins from preceding quarters have benefited from economies of scale, as well as an efficiency drive that was implemented at the end of 2018. For example, labor included in the cost of goods sold represented only 8.7% of revenues (three months ending March 31, 2018: 17.8%) and testing represented only 1.5% of revenues (three months ending March 31, 2018: 8.2%), both substantial improvements.
Coastal Harvest achieved EBITDA of $1,865,542, offsetting the operating losses at ANM of $(618,400) and at HLO of $(299,371), as well as $18,511 of expenses at "Ireland", the second planned Cathedral City facility in California. The total contribution to EBITDA from operations was $929,260.
The cash used for operations was $2,057,852 and for capex was $347,121.
The Company raised bridge financing of $1,746,993 million in the three months ending March 31, 2019, and cash at the end of March 31, 2019, was $361,053.
With the implementation of new proprietary products (e.g. DabTab™ Dablets), as well as the execution of existing contracts, Halo is now operating at an annualized production rate of approximately $25 million in California. Halo struck green gold with American's prodigious appetite for 'dabbing' as the preferred method of cannabis inhalation as it provides a mess-free way to consume full-spectrum cannabis oils and concentrates in one neat dose.
This consumer benefit was enhanced with the recent launch of the DabTabs Go™ - the first and only ultra-portable vaporizer for DabTabs™ Dablets. DabTabs Go™ provides quick, consistent and controlled heating, an innovation assuring consumers of a full-spectrum, vaporization experience with DabTabs Dablets. With future sales set to be under the company's Gilt™ brand, customers can look forward to availability throughout California, Nevada and Oregon by July 2019.
Poised for global expansion, Halo Labs has a wide distribution network with several key partners and is directly partaking in the U.S. and African and European cannabis markets. With an acute understanding of the core tenets of innovation, proprietary technology, distribution and manufacturing, Halo will continue to disrupt traditional pharmaceutical and nutraceutical industries by implementing growth strategies that pioneer brand new technologies including injectables, powders and pharmaceuticals.
Through its organic growth, innovative thinking, and quality products, Halo brings competitive dimension to the global cannabis industry and continues to champion cannabis reform in the United States and abroad.
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ABOUT HALO LABS
is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates - the fastest growing segments in the cannabis industry. Halo has expertise in all major cannabis manufacturing processes, leveraging proprietary processes and products, and has produced more than 3.5MM grams of oils and concentrates since inception. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. Halo currently operates in California and Oregon, as well as Nevada, with our partner Just Quality. The company has also begun operations in Lesotho, Africa through a strategic partnership. With an unwavering commitment to consumer-centric focus, Halo will continue to market innovative branded and private label products across multiple product categories.