East Evans Creek Farm Update Flower, Pre-Roll & Clone Oregon Business Overview - Seite 2

Sales from pre-rolls, including infused pre-rolls, are estimated to be $1,000,000. This is due to the anticipated launch of an infused line of pre-rolls in Oregon by the end of Q2 which, according to BDS Analytics, is the fastest growing segment of this category. Approximately 2/3 of the expectation will be due to current pre-rolls which average $5 per unit across various SKUs including multipacks and 1/3 will be due to infused pre-rolls that are projected to sell at a higher price point per unit of $7. The Company expects to sell 48,000 units of infused pre-rolls this year. The current monthly sales of pre-rolls are anticipated to triple by year end as the Company is ramping up pre-roll assembly in order to supply more dispensaries.

In total, the Company is expecting $3,600,000 sales in Oregon from biological asset product categories this year. Usable cannabis from biomass for concentrate production which is estimated to be 14,000 pounds in 2020 and is not included in biological asset product category sales expectations.

“Halo has been focused in expanding its Oregon biological asset portfolio of products to include OG DNA and TerpHogz branded flower and pre-rolls. The Company has recently launched sales of clones and infused pre-rolls to our dispensary partners. We now are turning our focus to implement similar strategies in California and potentially Nevada. In addition, we are in discussions with other flower brands to license additional genetics and strains for Oregon, California, Nevada and Lesotho,” said Andreas Met, Chief Operating Officer and Co-Founder.

About Halo

Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows and extracts and processes quality cannabis flower, oils, and concentrates and has sold over 5 million grams of oils and concentrates since inception. Additionally, Halo has continued to evolve its business through delivering value with its products and now via verticalization in key markets in the United States and Africa with planned expansion into European and Canadian markets. With a consumer-centric focus, Halo markets innovative, branded, and private label products across multiple product categories.