Halo Labs (NEO: HALO) (OTCQX:AGEEF) has been one of Rich’s favorite pot stocks for more than a year now. The company has certainly been a favorite of the RichTV Live community, as has Halo’s CEO, Kiran Sidhu, who has come into the studio to talk with Rich on multiple occasions.
Well, today Rich interviews the company’s new president, Katie Field. Prior to her time at Halo, she worked at such institutions as The White House, The Brookings Institution, and Bain & Company. In 2014, she entered the cannabis industry in Florida. Afterwards, Field operated a strategy consulting practice focused on cannabis.
She and Rich discuss the company’s position, expansion plan, and how these elements will affect investors.
Halo Labs is Refocusing on Better-Performing Revenue Segments
Late last month, Halo published its financial results for the three months ended March 31, 2020. Revenue for the period came to $4,449,098, a 49% decrease compared from this quarter last year, but a 66.7% increase from the previous sequential quarter.
The reason for the decline in revenue is due to the company’s shift away from the vape segment. This, Fields explains, is a wise decision in the long run, as Halo will be able to focus on its better-performing segments. In addition, the company remains cash-rich, as it has nearly $4 million in the bank as it refocuses its revenue streams.
More recently, Halo Labs finalized two acquisition deals that have HUGE potential for its bottom line. The first is for a 66.67% interest in a North Hollywood cannabis dispensary applicant. The second is for total ownership of a retail management company called Crimson & Black.
Together, these deals will cost $11.5 million. To generate these funds, the company issued 49.31 million of its common stock at $0.23 each.
How These Deals Will Affect Business
By finalizing these deals, Halo has strengthened its expansion plan into California and Oregon. Fields says that the company plans to launch California sales by Q3 2020. At that time, there will be 10 different gummy packages, which will be vegan, gluten-free, and feature organic ingredients.
In Oregon, Fields expects to triple gummy production, from 500,000 gummies per month to 1.5 million, by the fall.
As California and Oregon are two of the most lucrative cannabis markets, Halo is likely to see the benefit of its strategy affect the stock price by the end of the year. Keep watching RichTV Live for more info about this compelling cannabis stock.
Featured image: DepositPhotos © Pro_Stocks
