Halo Labs Reports Q2 2019 Financial Results
Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) today announced its financial and operational results for the second quarter for the period ended June 30, 2019 (“Q2”). The California market continues to be a significant growth factor for Halo as revenues in Q2 totaled $9,552,012 representing a 356% increase over Q2 2018 (three-month period ended June 30, 2018: $2,093,468) and a 10% increase quarter over quarter in comparison to Q1 2019 (three-month period ended to March 31, 2019: $8,718,503).
Q2 2019 Financial and Operational Highlights
- Revenues for the six-month period ended June 30, 2019 were $18,270,515 (six-month period ended June 30, 2018: $4,262,444), a 329% increase year over year, explained by first-time contributions from Coastal Harvest LLC (“Coastal Harvest”) in California and HLO Ventures (NV), LLC (“HLO”) in Nevada, as well as an 11.8% increase in revenues at ANM Inc. (“ANM”) in Oregon;
- ANM revenues were $5,692,558 for the six-month period ended June 30, 2019 (six-month period ended June 30, 2018: $5,092,810); HLO generated revenues of $1,331,583; and Coastal Harvest $11,246,374, respectively;
- ANM achieved a gross margin of 11.8%, Coastal Harvest achieved a gross margin of 30.7%, and HLO achieved a gross margin of -1.8% in the six-month period ended June 30, 2019, respectively. The aggregate total gross margin was 20.2%;
- Coastal Harvest achieved EBITDA of $2,687,354, offsetting the operating losses at ANM of $(1,383,689) and at HLO of $(727,182), as well as the $33,378 of expenses at Ireland (the Company’s licensed expansion in Cathedral City). The total contribution to EBITDA from operations was $544,337;
- In the six-month period ended June 30, 2019, the facility in Coastal Harvest sold 742,906 grams of distillate and 320,314 grams of live resin. Distillate sold at an average price of $7.08 per gram and live resin at $11.29 per gram;
- In the six-month period ended June 30, 2019, the facility in Nevada sold 47,476 grams of distillate at an average price of $28.74 per gram;
- In the six-month period ended June 30, 2019, the use of cash for operations was $9,232,040, and for capital expenditures was $1,272,989, respectively; and,
- On April 4, 2019, the Company closed a financing whereby it issued convertible debenture units at a price of C$1,000 per unit. The Company raised gross proceeds of C$21,163,000 ($15,842,620), the net proceeds of C$18,188,293 ($13,618,485) under such offering. Cash at the end of June 30, 2019, was $7,548,321.