Halo Labs Revenue Triples After Expansion into California & Nevada -- CFN Media
Seattle, Washington--(Newsfile Corp. - May 17, 2019) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article on Halo Labs Inc. (NEO: HALO) (OTCQX: AGEEF). The company's revenue tripled to more than $8.7 million after launching cannabis oil and concentrate operations in California and Nevada.
The company's California operations generated $5,324,396 in revenue; its Nevada-based business generated $514,365 in revenue; and its existing Oregon operations reported a 32.8% increase in revenue to $2,168,975 for the quarter.
While the company has roots in Oregon, its California business has quickly become the biggest growth driver. California-based operations generated $1,865,542 in EBITDA, which offset operating losses of $618,400 in Oregon and $299,371 in Nevada, to achieve aggregate EBITDA of $929,260 for the quarter.
The California businesses' gross margins were a robust 39.7%, which was significantly higher than the 8% in Oregon and 3.9% in Nevada. While the Oregon business reported a 4% increase in average selling prices, the Nevada business' gross margins were temporarily depressed due to high inventory costs as a result of FIFO inventory accounting. These margins are projected to normalize in the second quarter.
The company used approximately $2 million in cash and raised a $1.7 million bridge financing to end the quarter with about $360,000 in cash and cash equivalents.
Halo Labs anticipates that its Coastal Harvest will continue to be a strong growth driver for revenue and profitability. With the launch of DabTabs™ Dablets and other initiatives, the subsidiary is already operating at an annualized production rate of about $25 million. New distributor agreements could further improve these figures and cement its leadership position.
In addition to these efforts, the company continues to launch new higher margin products across all three markets. The company introduced its first edible line in November 2018, DabTabs™ Dablets in late March, and DabTab GO™ in early-May. These products could further enhance average selling prices and help improve overall EBITDA.
The company also secured a hemp processing facility in mid-April that will power its entry into the market for cannabidiol (CBD) products. The facility is expected to process about 10,000 kilograms of hemp per month when fully operational, which could yield 700 to 900 kilograms of high-grade distillate or isolate CBD each month.
Outside of the United States, the company has begun operations in Lesotho, Africa through a strategic partnership. The country was the first in Africa to regulate medical marijuana and its regulations were crafted with exports in mind. The company's focus on cannabis oils and concentrates sets it apart from many others in the country.
HALO Labs - The Journey of a pioneer in Cannabis Extraction and Oils. Please click this link to see a video on HALO Labs.
Halo Labs Inc. (NEO: HALO) (OTCQX: AGEEF) represents a unique opportunity to invest in a multi-state operator focused on cannabis oils and concentrates. With its proven success in Oregon, the company is quickly expanding into new states to increase revenue and launching new higher margin products to increase profitability. The company's upcoming move into the CBD market could also prove to be a catalyst for further growth.
For more information, visit the company's website at www.halocanna.com.
Please follow the link to read the full article and see the full video on CFN:
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44863