Halo Labs Provides California Update
Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that retail sales of the Company’s Hush branded products have been have been growing in the state of California. In addition progress has been made on other initiatives in California.
Wholesale Dispensary Sales
Cannabis sales have stalled in California during the COVID-19 pandemic. According to BDS Analytics, in April 2020, cannabis sales for state licensed retailers and delivery services reached $252 million, declining by nine percent from the trailing month and growing four percent compared to April 2019. Concentrate sales were $78.1 million, down 9.9% from April 2019. Marijuana Business Daily postulates that while not affected by tourism, the nascent legal California market is dealing with high prices, an entrenched black market, and lack of retail stores1. Despite the flat overall trend and downward category trend, Hush vape cartridges have been growing rapidly with unaudited wholesale sales in April of $298,000. Unaudited May 2020 wholesale sales of Hush branded products were $417,0002.
Furthermore the Company anticipates this growth rate will be sustained as the California menu expands, the Company penetrates more stores, and onboards additional sales reps to the team. Halo has quadrupled the team and plans to launch one, ten, and twenty piece gummy varieties with multiple flavors and infused pre-rolls before the end of Q3 2020. Halo is supporting further brand recognition initiatives through its inclusion on Weedmaps and is targeting becoming a top 20 cannabis brands across the state of California by Q4 2020. Halo is in 75 of approximately 600 dispensaries statewide meaning there is ample runway to grow.
Kiran Sidhu, CEO and Co-Founder of Halo stated, “With high unemployment in the United States, I believe consumers are flocking to affordable products. Hush is the product line that brings value to the people.” He continued, “We are focused on growing our market share in California by expanding Hush branded cartridges, launching our edibles and tincture product offerings to include recreational focused gummies, mints, syrup and chocolates, and a terpene enhanced gram pre-roll line.”
Andreas Met, COO and Co-Founder commented, “We are thrilled at the progress made expanding our California sales team from two to eight individuals in the last six weeks. At the current expansion rate, and with the launch of more value-based product lines, we hope that Hush will be on of the top cannabis brands in California sales-wise by the end of August. It’s an exciting time for Halo Labs.”