TORONTO--(BUSINESS WIRE)--Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) announces that Halo expects a harvest on the six-acre outdoor Evans Creek grow site (“EEFC”) of approximately 18,000 pounds (8,165 Kilos) of dry weight, usable, cannabis--a result of favorable climate conditions throughout the region. Halo expects this year’s East Evans Creek harvest to have a wholesale value of up to $9,000,000. According to Halo’s CEO, Kiran Sidhu, “Despite widespread fires in Oregon, our farm at EEC has been unaffected. Sadly, many properties in the Rogue Valley were destroyed due to local wild fires; however the East Evans Creek valley has fortunately been unaffected by fire.”
Physical harvests began earlier this month. The strains being harvested included a pilot program of 2,000 “auto-flowering” plants. To date, this part of the harvest yielded approximately 1,500 pounds of wet weight. Given the anticipated success of this small pilot program, the Company intends to expand this method next year to up to 50,000 plants, a move that is expected to increase the company’s harvest in 2021 by up to 2,500 pounds of dry weight flower and 2,500 pounds of shatter-grade extraction material. Andreas Met, Halo’s co-founder and COO states, “We had an opportunity to source some excellent genetics late in the season, and took a small risk with these plants. The results were excellent. We expect this will have a positive impact not only in Oregon, but also for the Company’s operations in Lesotho. We anticipate that these auto-flowering plants may allow us to schedule an additional harvest, that will potentially add another $2,500,000 of revenue to next year’s harvest.”
This year, Halo partnered with DNA Genetics and Zkittlez (Terphogz). In a combined effort, the Company planted twenty-one award winning strains this year. This is more than half of the strains we planted. As anticipated, these plants have adapted well in a new climate. Halo expects to sell these strains at premium prices in the Oregon market. Andreas Met affirmed, “We are excited to be the exclusive distributors of DNA Genetics and Terphogz in Oregon. We anticipate that the quality and name-recognition associated with these leading brands will raise our average unit price on the sales end; and we are also well-positioned to leverage these relationships in Lesotho on an even larger scale.”
Additionally, Halo is working with other Oregon farms to harvest material for FSHTE (full spectrum high terpene extract) production, using fresh frozen technology. FSHTE is a more refined version of “live resin” that the Company started producing in 2020 as an R&D project. Andreas Met confirms, “Last year, we got on the map in Oregon as a supplier of high-quality Live Resin, selling $1,800,000 of live resin products from November 2019 thru August 2020. This year, we are doubling down on that product, making a significant impact with even higher quality FSHTE. We’ve completely retooled our operation and processes to make quality products the likes of which Oregon has not seen at a commercial scale.”
Halo is in the process of expanding its flower processing and pre-roll production space from 1,000 sq. ft. to 5,000 sq. ft.. In prior years, the Company commenced production of flower in November. This year, production will start as soon as the product is dried, as early as later this month. This change is expected to improve sales rates, because Halo will be one of the first Oregon cultivators to start selling flower from the Fall 2020 harvest. Halo is targeting to process at least 900 pounds of flower per month by the middle of November. Andreas Met remarked, “Last year, we enjoyed tremendous success selling our flower products. This year, we expect to be ‘out of the gates’ faster, with an even greater focus and intention. We have already partnered with other farms to process their flower as well. Our goal is to be the largest flower and pre-roll operation in Oregon this season.”
Finally, Halo expects to finish the second green house at East Evans Creek by the end of this month. Once completed, this 3,000 sq. ft. structure will house the Company’s genetic bank, serve as an incubator for next season’s plants, and provide a staging ground for the Company’s clone sales program. This year, the Company sold over 6,000 clones as a pilot program. Andreas Met stated, “We started a clone operation from scratch. The reception exceeded our expectations. Next year, we intend to sell even more clones as these sales have favorable profit margins and complement our other farm activity. We aim to sell 100,000 clones at an average wholesale price of $10 in the first two quarters of 2021, during the Oregon planting season.
See highlights from our Oregon Business Update on our YouTube channel
About Halo Labs
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 scale efficiently, partnering with trustworthy leaders in the industry, who value their operational expertise in bringing top-tier products to market. Current growth includes expansion in key markets in the United States and Africa, with planned geographic expansion into U.K. and Canadian markets. With a consumer-centric focus, Halo markets value-driven, branded, and private-label products across multiple product categories.
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 United States in California, Oregon, and Nevada. Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd, in Lesotho under a 200-hectare license and is planning importation and distribution of CBPM’s into the United Kingdom via Canmart.
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 is not limited to, statements regarding the cultivation, processing, distribution and sale of the Company’s products in Oregon, harvest expectations, including projected weights and flower yields and quantities of live resin and contracts for biomass with key suppliers.
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: delays in obtaining required approvals from regulators, 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 April 16, 2020 and 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.
Financial Outlook
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 anticipated wholesale value of the Company’s harvest at ECCF, estimates of the Company’s additional revenue at EECF in 2021, increase in live resin production from November 2020 thru October 2021, clone sales and pricing during the first and second quarter of 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 these assumptions were derived by the Company using detailed analysis of historical results, plant counts, harvest plans, yield per plant by strain of A buds, B Buds, and Trim, current market pricing, current demand, environmental conditions, live resin processing using FSHTE techniques, pilot clone sales in 2020, current competitive pricing of A bud, B bud, trim, live resin, shatter and clones. 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.
