Halo Collective Reports Q4 Revenue Increase For its Budega(TM) Retail Stores in California

Toronto, Ontario--(Newsfile Corp. - January 27, 2023) - Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) (FSE: A9K0) ("Halo" or the "Company") a vertical integrated cannabis company, is pleased to report preliminary unaudited revenue numbers for its California operations, with retail sales increasing 16.8% for this last quarter[1]. The Company has made progress with its Budega™ VIP Program and its new location in Hollywood expected to open this year. The Company is evaluating new sales and marketing initiatives through a series of pop-ups across California which will act as a pre-requisite to the continued expansion of the Budega™ retail chain testing the demand in various regions within the state.

The Company has continually increased revenues in the retail division of its California operations each quarter, contributing over $1.4M to the top line revenues for 2022[2]. The Company expects a continued increase of retail store revenues after launching new marketing initiatives and prepares for an additional revenues stream from its third dispensary location opening later this year. BDSA projects US recreational and medical cannabis will be $46B by 2026, with California remaining the largest market and constituting over 50% of legal sales[3]. Another estimate has legal retail sales in the US growing to $52.6B by 2026.[4] With reduced capacity across the state[5] and larger players exiting[6], the Company believes its operations in California will continue delivering results in the years to come.

The following initiatives have been launched in a series of marketing efforts to increase top-lines revenues:

  • The Budega™ VIP Program will be available at all Budega™ locations for customers to participate in a loyalty points program. The special membership program includes a discounted rate to it high-value customers and will integrate a software program to allow efficient tracking of customer purchases. The Company will access purchase data to adjust promotional targeting accordingly.
  • A guerrilla marketing approach through a series of pop-ups across California. The incentive will act as a pre-requisite to the continued expansion of the Budega™ retail chain, testing the demand in various regions within the state while generating additional revenues.

The Company has been discussing innovative ways to connect with the community. Pop-up shops have been growing in recent years, with many brands opening short-term retail locations in cities around the world. In the modern experience economy, creating an environment where customers can touch, see and smell things creates a memorable experience. Instead of just skimming through racks or browsing items online, really experiencing a carefully selected inventory can help items stand out in shoppers' minds. Only being able to see the items for three days a month also adds a sense of urgency and exclusivity to the items, which can be a huge draw for customers.[7] Halo is in discussion for obtaining multiple event-based cannabis licenses to launch a series of pop-ups across California which will allow the Company to test the market acceptance in high traffic areas and communities in preparation for its retail expansion plans.

"The California cannabis market continues to deliver a large legal recreational consumer base and Halo intends to keep up with the state's evolving market trends. We will continue to assess the effectiveness the proposed pop-up incentive as we test different pockets in the state. Our Budega™ retail revenue growth has proven to be strong since the initial launch, and we expect to see this arm of the Company contribute to top line revenues as we expand into new locations," commented Katie Field, Chairman and Chief Executive Officer of Halo Collective.

The Company has obtained the state retail license for the Hollywood location and has been moving through necessary steps on construction and build out for the new opening.

About Halo Collective

Halo is focused on the United States West Coast, where it has vertically integrated operations covering the entire value chain from seed to sale. Halo cultivates, extracts, manufactures, and distributes quality cannabis flower, pre-rolls, vape carts, edibles, and concentrates. Halo sells these products under a portfolio of brands, including Hush™, Winberry Farms™, its retail brand Budega™, and license agreements with FlowerShop*. In addition, Halo has opened two dispensaries in Los Angeles under the Budega™ brand in North Hollywood and Hollywood, with plans to open one more in Hollywood in 2023.

In the non-THC sector, Halo is expanding into health and wellness categories, including CBD and functional supplements. Halo, through a series of acquisitions, has product offerings in the form of beverages (H2C Beverages) and dissolvable strips (Dissolve Medical).

Halo has successfully acquired and integrated a variety of companies which were subsequently reorganized to create Akanda Corp. (NASDAQ: AKAN), an international medical cannabis and wellness company, of which Halo is the largest shareholder. Halo has also acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab. Halo intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc. and to complete the distribution of the shares of Halo Tek Inc. to shareholders on record at a date to be determined.

For further information regarding Halo, see Halo's disclosure documents on SEDAR at www.sedar.com.

Connect with Halo Collective: Email | Website | LinkedIn | Twitter | Instagram

Contact Information

Halo Collective Inc.
Investor Relations

For additional information please contact Marshall Minor, Interim Chief Financial Officer of the Company at (541) 646-5694 or marshall@haloco.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". Forward-looking information may relate to anticipated events or results including, but not limited to expectations regarding improved performance, management's plans regarding Pistil Point and the California market, plans regarding streamlining of business segments, management's plans regarding its portfolio of cannabis businesses and intention to expand into health and wellness, the proposed distribution agreement with SWAY Energy Corporation, the expected opening date of the Company's California dispensaries and the proposed spin-off by Halo Tek Inc.

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: inability of management to successfully integrate the operations of acquired businesses, changes in the consumer market for cannabis products, changes in the expected outcomes of the proposed changes to Halo's operations, delays in obtaining required licenses or approvals necessary for the build-out of Oregon operations, dispensaries or Canadian operations, the proposed spin-out with Halo Tek Inc., delays or unforeseen costs incurred in connection with construction, the ability of competitors to scale operations in Northern California, delays or unforeseen difficulties in connection with the cultivation and harvest of Halo's raw material, 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 March 31, 2022 and other disclosure documents 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.


This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

[1] The 16.8% percentage has been calculated based on preliminary unaudited revenue numbers.
[2] The $1.4M revenue has been calculated based on preliminary unaudited revenue numbers.
[3] https://bdsa.com/wp-content/uploads/2022/05/BDSA_Cannabis-by-the-Numbers_Beer-Marketers-Insights-Presentation_May-2022-1.pdf
[4] https://mjbizdaily.com/marijuana-industry-will-add-nearly-100-billion-to-us-economy-in-2022/
[5] https://mjbizdaily.com/cannabis-growers-exit-california-market-helping-stabilize-prices/
[6] https://www.newcannabisventures.com/curaleaf-exits-three-western-states/

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