Halo Labs Announces December Record Sales

Published: January 18, 2021

Halo Labs Announces December Record Sales

Halo Labs Inc. announced that product sales continue to grow. The Company reports aggregate, unaudited monthly sales of approximately $2.3 million(1), one of the highest totals in the Company’s history and a record total for the month of December.  While December is historically a slower month in terms of sales, due to less selling days, the holiday season and flooded outdoor flower markets related to fall harvests, the stated sales represent a 135% increase over December 2019.

With Halo’s pending acquisition of the assets of Herban Industries OR LLC and the appointment of Dustin Jessup as its Chief Revenue Officer announced on December 18, 2020, the Company has already begun to recognize synergies and sales uplift through the combining of efforts with the Winberry salesforce.

Including the sales of Winberry of nearly $0.7 million(1) in December 2020, on a pro forma basis, total unaudited sales would be over $3.0 million for the month(2). This would effectively be a 212% increase over December 2019 on a pro forma basis. Effective January 1, 2020, Halo intends to begin to record sales of Winberry products following the distribution of Wineberry’s inventory, in accordance with the previously announced services agreement, offtake agreement, and intellectual property licensing agreement. Halo will begin to fully consolidate the financial results of Winberry following the completion of the acquisition of the Winberry assets under the asset purchase agreement (the “APA”), which is expected to close within six months. Completion of the acquisition of the Winberry assets pursuant to the terms of the APA is subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approval from the Oregon Liquor Control Commission.

The Company’s sales orders(3), including Winberry sales primarily to dispensaries, have been steadily growing all year from over $2.1 million in January 2020 to over $3.4 million in December 2020(1), which is an increase of 62% throughout the year. The attached graph shows Halo and Winberry combined sales orders from January to December 2020(1) (2).

Dustin Jessup, Chief Revenue Officer of Halo stated, “We continue to consolidate our sales forces and increase efficiencies within the sales division. In December alone, the Halo and Winberry sales team generated sales orders in excess of $3.4 million.”

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 CaliforniaOregon and Nevada. The Company sells cannabis products principally to dispensaries under its own brands Hush, Mojave, Exhale, and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™), Winberry 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.