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All figures in USD unless stated otherwise
TORONTO, Jan. 29, 2021 /CNW/ - Halo Collective Inc. ("Halo" or the "Company") (NEO: HALO) (OTCQX: HCANF formerly AGEEF) (Germany: A9KN) is pleased to announce it is off to a strong start to 2021 with estimated aggregate unaudited monthly sales of over $3.7 million(1) in January 2021, a new monthly sales record since the Company's inception. This sales figure would represent a 141% increase year over year ("YoY") compared to January 2020 and a 63% increase month over month ("MoM") compared to December 2020.
Furthermore, the Company's sales orders(2), including historical sales of Herban Industries OR LLC ("Winberry"), also continue to steadily grow. Total pro forma sales orders for Halo and Winberry have shown YoY growth of 92% compared to January 2020 and MoM growth of 18% compared to December 2020. Total sales orders in January 2021 are in excess of $4.0 million which also is a new monthly sales order record.
Effective January 1, 2021, Halo began recording sales of Winberry products following the distribution of Winberry products pursuant to a variety of commercial agreements. On January 14, 2021, the Oregon Liquor Control Board ("OLCC") gave Halo, via its subsidiary Halo Winberry Holdings, LLC, temporary authority to operate the licensed businesses of Winberry as a secured party giving Halo effective control over Winberry. Accordingly, Halo will begin to fully consolidate the financial results of Winberry pending the Company's completion of the acquisition of the Winberry assets under the asset purchase agreement (the "APA"), which is expected to close in the second quarter of 2021. The completion of the acquisition of the Winberry assets pursuant to the APA remains subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approval from the OLCC.
The Company would also like to announce that further to the news release dated January 25, 2021, that the Company has changed their ticker symbol on the OTCQX from AGEEF to HCANF. The company will trade under HCANF effective open market on Monday, February 1st, 2021.
Halo is a leading, vertically integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils and concentrates, and has sold approximately eight 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, Africa, the Republic of Malta in partnership with MedCan Ltd., and 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, and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™), Winberry Farms and FlowerShop.
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. Halo has also partnered with GMH to purchase Bar X Ranch in Lake County, California, with plans to develop up to 80 acres of cultivation, which would comprise the largest grow in Northern California.
Recently, the Company has entered into a non-binding letter of intent with Red Light Holland Corp. for the purpose of creating a joint venture to become a licensed psilocybin manufacturer to supply psilocybin products to licensed service centers in the State of Oregon.
Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd ("Bophelo") in Lesotho, South Africa, 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 cannabis-based product for medicinal use ("CBPM") importation and distribution licensing in the United Kingdom via cannabis suppliers Canmart Ltd. 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.
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 expected sales numbers, the completion of the Winberry asset acquisition in accordance with the terms of the APA, halo's planned expansion into the Canadian retail market, the expected size and capabilities of the final facility planned at Ukiah Ventures, the size of halo's planned cultivation facility in northern California and the ability of Bophelo and Canmart to serve the U.K.. market.
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 operations; 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; delays or unforeseen difficulties in connection with the cultivation and harvest of halo's raw material; 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, 2020 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.
Pro Forma Information
This press release contains references to pro forma financial information, including with respect to pro forma sales. Pro forma sales include the sales for the thirteen-month period (provided on a month-to-month basis) ended January 31, 2021 for Winberry. Pro forma financial information in this press release does not include anticipated costs and expenses to generate such sales. Completion of the proposed acquisitions under the APA is subject to, among other things, the satisfaction or waiver of any conditions precedent to the consummation of such acquisition (including the receipt of any requisite regulatory and third-party approvals). The Company believes the pro forma results presented provide relevant and useful information for investors because they clarify the Company's operating performance, make it easier to compare the Company's results with those of other companies and allow investors to review performance in the same way as the Company's management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of the Company's performance, and they may not be comparable to similarly named measurements from other companies.
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the sales of the Company and Winberry during the thirteen-month period ended January 31, 2021 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading "Cautionary Note Regarding Forward-Looking Information and Statements" above and assumptions with respect to market conditions, pricing, and demand. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading "Cautionary Note Regarding Forward-Looking Information and Statements" above, it should not be relied on as necessarily indicative of future results.
Estimated results are unaudited and prorated based on preliminary results as of January 28, 2021. These results are subject to customary financial statement procedures by the Company and its auditors. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See "Cautionary Note Regarding Forward-Looking Information and Statements".
Sales order are from the Company's and Winberry's sales platforms, via LeafLink and Nabis. Please note these numbers are higher than recorded sales and do not reflect potential cancellations, returns or credits. In addition, a portion of these orders may not be recorded in the month they are generated, if delivery has not been made and accepted.
This chart shows a historical pro forma combining the monthly sales orders of the Company and Winberry since January 2020. The source of sales order data is stated in Note 2. Please see "Pro Forma Information" disclosure above.
SOURCE Halo Labs Inc.
For further information: Halo Collective, Investor Relations, [email protected], www.haloco.com/investors