East Evans Creek Farm Update Flower, Pre-Roll & Clone Oregon Business Overview
Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce overall improvement in Oregon’s flower category and flower product related sales. According to BDS Analytics, category sales of flower and pre-rolls have grown at 51% and 56% for the first four months of calendar year 2020 when compared to the same four month period in 2019.
The Company hopes to expand on this category growth, as the 2020 crop is harvested. The Company’s 2019 Oregon harvest yielded 2,546 pounds of flower and 13,364 of biomass for concentrate production, a total yield of 15,910 pounds of cultivated cannabis. In 2020, the Company increased plantings at Evans Creek to approximately 8,000 starts up from 4,000 starts in 2019. In addition, Halo recently has licensed both OG DNA Genetics and TerpHogz genetics, planting half an acre and one acre respectively of each Company’s strains. Now fully planted as of May 2020, the total outdoor canopy size is 6 acres at Evans Creek. As a result of shifting production towards flower, the Company anticipates harvesting 6,000 pounds of flower and 14,000 pounds of biomass for concentrate manufacturing this year, a total yield of 20,000 pounds of cultivated cannabis which is approximately 2.5 pounds of usable cannabis per plant.
To further bolster flower and pre-roll sales, Halo has been investing in greenhouses at Evans Creek to grow year round. The Company built and currently operates 3,000 square feet of greenhouse and is producing clones for sale. Halo launched clone sales, which have a high gross margin in excess of 80%, to dispensaries this month. By year end the Company intends to build and operate more greenhouses at Evans Creek and plans to have 12,000 square feet total under production for clones, mothers, and incremental flower production by the end of 2020. Flower cultivation from these greenhouses have not been included in the 20,000 pound 2020 harvest estimate.
For the year ended December 31, 2020, estimated Oregon revenue from flower sales are expected to be $2,100,000 due to increased flower yields and a higher price per pound resulting from branded genetics partnerships. The Company anticipates selling half of the harvest at $700 per pound by the end of 2020.
Sales of clones which started in June 2020 are expected to be $500,000. At $10 per clone the Company plans to sell 50,000 units this year which is based on the newly built 3,000 square feet of greenhouse currently in clone production.