Meet The Company Thatâs Expected To Grow Revenue About 1,500% Higher Than The Industry AverageâŚ
Hereâs how Halo Collective (NEO: HALO) (OTCQB: HCANF) could take advantage of a potential $47 BILLION market cannabis opportunity!
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5 Reasons Halo Collective Has the Potential to See Higher Highs
(NEO: HALO) (OTCQB: HCANF)
Halo Collective owns 44% of Akanda Corp., which could also give it exposure to a potential $47 billion global medical cannabis market. (2,3)
Halo Collectiveâs equity in its assets may be bigger than its market cap. âThe financials say Halo is trading at a deep discount,â says CFO Philip van den Berg. (1)
At the moment, the company owns and operates 11 acres of cannabis cultivation in Oregon, operates centralized manufacturing, and distributes to 575+ dispensaries generating over $25M in wholesale revenues. (1)
Halo partnered with Green Matter Holdings to purchase BarX, a 1,600-acre property in Lake County, CA, with 67 acres of outdoor cultivation planned for the 2022 season. (1)
Simply Wall Street shows Halo Collective earnings could grow about 36.5% annually, as compared to the industry average of approx. 10%. Annual revenue growth is forecast to grow about 65%, as compared to approx. 4% for the industry. (4)
The U.S. cannabis industry is growing at an unprecedented pace.
In 2021, global sales hit $37.4 billion. By 2026, sales could be as high as $102 billion. (Source 5)
Cannabis is now legal in Canada. About 18 U.S. states have legalized its recreational use. About 37 U.S. states have legalized its medical use. About 91% of Americans now say cannabis should be legal. The Netherlands, Uruguay, Jamaica, Spain, etc. have all legalized its use.
Yet, even with that growth, cannabis stocks have slumped, perhaps temporarily.
Look at cannabis stock, Halo Collective (NEO: HALO) (OTCQB: HCANF), for example.
With about 44% ownership in AKAN, what could be one of the worldâs largest licensed cannabis producers, Halo may now have exposure to a potential $47 billion global medical cannabis market.
Halo Collective is Akanda Corp.âs Biggest Shareholder, with a 44% Stake
In March, international medical cann-a-bis company, Akanda Corp. commenced trading on The Nasdaq Capital Market under the ticker symbol âAKAN.â (7)
After pricing four million shares at a price of about $4.00, Akanda hit a high of about $31 out of the gate. Not only was that great news for Akanda, it was also substantial for Halo Collective. (4)
After all, Halo Collective holds a 44% stake in the Akanda stock. (3)
Better, Akanda has plans to target the global medical cannabis market, which could be worth about $47 billion by 2027. That alone could give Halo Collective a unique opportunity.
Halo Collective May be Worth More than the Sum of its Parts
At the moment, Halo Collectiveâs equity in its assets may be bigger than its market cap.
In fact, âThe financials say Halo is trading at a deep discount,â says CFO Philip van den Berg, âby spinning off Akanda and Triangle, we can unlock substantial value and benefit shareholders in the process.â
With that, the sum of the parts could unlock substantial value for shareholders.
Halo Collective is No. 1 in sales to Oregon Dispensaries â and Still Growing
At the moment, the company owns and operates 11 acres of cannabis cultivation in Oregon, operates centralized manufacturing, and distributes to 575+ dispensaries generating over $25M in wholesale revenues.
Halo Collective is Positioned to Operate One of the Largest Grows in California
Halo partnered with Green Matter Holdings to purchase BarX, a 1,600-acre property in Lake County, CA, with 67 acres of outdoor cultivation planned for the 2022 season. We have submitted for an additional 13 acres and have potential for ~400,000 lbs of annual biomass, which would make the property one of the largest licensed single-site grows in California.
Halo Collective is Expanding its Retail Footprint in the High-Volume Los Angeles Area
Halo Collective recently opened its first dispensary and plans to open two more in the Los Angeles-area under its Budega brand. With that, âCalifornia is expected to generate over $4.8B in annual revenue in 2022, of which LA generates 30% of all retail revenue in CA. Our three dispensaries give us exposure to roughly $1.5B in retail sales,â according to Halo.
Halo Collective has Total Ownership from Farm-to-Shelf
The company also has total ownership from farm to shelf. Haloâs cultivated flower and manufactured products sell in dispensaries (primarily in the U.S.) under proprietary brands Hush⢠and Winberry Farmsâ˘, and under partnership license agreements with Papa's HerbÂŽ, DNA Genetics, FireballÂŽ, and FlowerShop.
Halo Collective is Financially Sound
According to Simply Wall Street, Halo Collective had about $161 million in cash and assets (as of 3/16/22), which exceeds its long and short-term obligations. (4)
Even better, as of 3/16/22, Simply Wall Street shows Halo Collective earnings could grow about 36.5% annually, as compared to the industry average of approx. 10%. Annual revenue growth is forecast to grow about 65%, as compared to approx. 4% for the industry. (4)
Also, just secured financing:
$65m: https://finance.yahoo.com/news/r-e-p-e-t-140000108.html
$14m: https://finance.yahoo.com/news/halo-collective-enters-unsecured-loan-200500831.html
In addition, Halo Collective just reported record third quarter results.
Revenue grew to about $8.7million, up approx. 28% year over year from about $6.8 million. (Source 8)
That included the sale of approx. 9.2 million grams of cann-a-bis products principally to dispensaries in Oregon and California, about a 620% year-over-year increase.
Organic revenue growth was approx. 9%. Adjusted gross profit was about $2.3 million, or approx. 26.5% gross margin, as compared to approx. $2.4 million, or about 35.7% gross margin, year over year. Adjusted EBITDA was approx. ($4.5 million) as compared to about ($4.4 million) in the second quarter of 2021.
âWe are actively executing a four-pronged strategy consisting of growing our wholesale business in California and Oregon, launching California retail in Los Angeles, streamlining costs and monetizing equity positions in Akanda, Triangle Canna and HaloTek. Even with the strong headwinds in both California and Oregon, we believe that we have a path to profitability in 2022,â - CEO Kiran Sidhu
The Halo Collective Team
RYAN KUNKEL
Chairman
Ryan Kunkel is a leading industry expert and entrepreneur in cannabis, influencing its legal, regulatory, and operational development since the legalization of recreational cannabis use in Washington state in 2011.
He was instrumental in the raise of $50M in two private offerings, which enabled him to expand the Have a Heart footprint by creating an organizational infrastructure to maintain the dispensary storefronts at a rapid pace.
KIRAN SIDHU
CEO
CEO, Co-Founder, and Director of Halo Collective, Kiran Sidhu s a seasoned cannabis executive, serial entrepreneur and former M&A banker.
Kiran has been Director of Halo Collective since September 2018 and its CEO since 2016, developing a leading company in cann-a-bis extraction that utilizes every type of extraction and producing over 4 million grams of product since inception.
KATIE FIELD
President
Katie Field is a strategy consultant and executive with a career spanning both the private and public sectors.
Ms. Fieldâs resume includes notable companies and institutions such as The White House, The Brookings Institution, and Bain & Company.
PHILIP VAN DEN BERG
CFO
Philip van den Berg was a Founding Member and executive director of the European research department of Goldman Sachs in London.
Director European equities Deutsche Morgan Grenfell in London. Founding member of Olympus Capital in London. CFO and director at Golden Leaf, CFO and director at Namaste.
Sources
Source 1: Halo Collective Investor Deck
Source 2: https://www.barrons.com/articles/akanda-set-to-trade-its-shares-on-tuesday-51647295705
Source 3: https://www.theglobeandmail.com/investing/markets/stocks/OGI-Q/pressreleases/7618429/medical-cann-a-bis-ipo-akanda-corp-soared-265-on-debut/
Source 4: https://simplywall.st/stocks/us/pharmaceuticals-biotech/otc-hcan.f/halo-collective
Source 5: https://prohibitionpartners.com/2021/12/16/global-cann-a-bis-sales-hit-37-4-billion-in-2021-rising-to-102-billion-by-2026/
Source 6: https://stockcharts.com/h-sc/ui?s=HALO.NE
Source 7: https://www.barrons.com/articles/march-first-ipo-akanda-51647357812
Source 8: https://haloco.com/halo-news/halo-collective-reports-third-quarter-2021-financial-results/
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