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Oct 25, 2019 7:10 AM ET

Halo Labs: Building a Cannabis Concentrates Empire


iCrowd Newswire - Oct 25, 2019

CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article and CEO video discussing Halo Labs Inc. (NEO: HALO) (OTCQX: AGEEF) (FSE: A9KN). The company has emerged as a leader in the concentrates sub-sector with revenue that tripled to $8.7 million last quarter with more than $25 million in total assets. In addition to its growing footprint in concentrates, the company recently acquired a hemp processing facility in mid-April that will power their entry into the cannabidiol (CBD) market and began operations in Lesotho via a strategic partnership.

Cannabis concentrates are projected to reach $8 billion by 2022, according to BDS Analytics and Arcview Market Research, making it the fastest growing of the three major segments of the legal cannabis market (flower, concentrates, and edibles). In particular, vaporizers sales soared from less than $100 million in 2014 to more than half of total concentrate sales last year-and they’re expected to hit $6.5 billion in sales by 2022.

CFN Media interviewed Halo Labs CEO Kiran Sidhu to discuss the company’s humble origins and its ambitions to become the world’s leading extraction provider.

The Extraction Experts

Halo Labs was founded by an experienced team with blue-chip pedigrees. After its humble beginnings on a farm back in 2015, the company moved into a 16,000 sq. ft. facility the following year and captured one-fifth of Oregon’s concentrates market by 2018. The company is now growing its presence beyond Oregon and into other states where recreational cannabis has been legalized-including Nevada and California.

The company’s founding team included:

The team began by using volatile extraction methods, but quickly realized that there was no panacea. Rather than focusing on a single volatile or CO2 extraction method, they began using different processes for different products to achieve the best results, always trying to deploy the latest technology and equipment. This exploration helped the company build unparalleled expertise in all major manufacturing processes for cannabis concentrates.

In addition to extraction, the team developed proprietary chemical processes that could convert THC and CBD into powders for edibles or vaporizing applications. The DabTab™ was born as a no-mess solution for dabbing distillate, shatter, or live resin with precise filling and dosing for medical and recreational applications. The company is also gearing up to launch microencapsulation technology that could pave the way for beverage products.

Innovative Growth Strategy

Many cannabis concentrate companies are focused on building brands. After all, it stands to reason that branding is the best way to build barriers to entry in a market that could become commoditized over time. But, that’s not always the case.

Halo Labs’ founders-some of whom have MBAs from prestigious schools like Wharton and Anderson-recognized that nascent markets behave differently than one would expect.

Brands don’t matter as much as the opening price point-or the least costly item in a given category. The company’s approach has therefore been to control the opening price point at each product level on dispensary shelves, which helps maintain its shelf space and encourages trial and repeat business over time.

The best way to control opening price points is through white-labeling products. Many concentrate providers are hesitant to develop white label products for dispensaries, but Halo Labs has embraced the opportunity as a way to capture market share. About 35 percent of its revenues come from white labeled products today, but the team plans to grow that figure to upwards of 50 percent of its business in 2019.

The strategy has also helped it springboard into new markets. The company entered into Nevada’s market where it has already started to experience early successes. Nevada differs from Oregon in that it’s a much more closed market, modeled after the state’s casino industry, which creates valuable barriers to entry.

The company also launched in California where it has already secured multiple long term contracts with a leading distributor. Since its initial entry, California has already become the single largest contributor to its total revenue and profitability.

While its focus is on white label products, the company has developed its own set of in-house brands, which provides a valuable proof-of-concept for its white label partners and establishes its own higher-margin opportunities. The company’s DabTabs™ have already proven highly successful, while its new edibles line launched in November 2018 could further enhance average selling prices and boost revenue and profitability.

 

Looking Ahead

Concentrates represent the fastest growing segment of the cannabis industry, which means that all brands will require cannabis oil at the end of the day.

Halo Labs Inc. (NEO: HALO) (OTCQX: AGEEF) (FSE: A9KN) has taken a unique approach to the market by tailoring their methods to match products and seeking to control the opening price point rather than building in-house brands. Investors may want to take a closer look at the stock as its experienced team continues to execute.

 

About CFN Media

For Visitors and Viewers

CFN Media’s Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.

For Cannabis Businesses & Companies

CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.

Our powerful digital media and distribution platform conveys a company’s message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.

Since 2013, CFN Media has enabled the world’s preeminent cannabis companies to thrive in the capital and public markets.

Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:http://www.cannabisfn.com/legal-disclaimer/

HALO Contact:

Collin Beloin

[email protected]

Frank Lane
206-369-7050
[email protected]

Contact Information:

Collin Beloin

[email protected]








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