Halo Labs Experiences Delays In Regulatory Approval For California Dispensary

Halo Labs Inc. HALO AGEEF reported updates on its operations and activities, including the status of its California expansion.

The Toronto company still has not received local approval to build out its North Hollywood dispensary.

Halo Labs attained a controlling interest in the dispensary earlier this year. Since then, the coronavirus pandemic has disrupted the regular flow of virtually every type of business.

"We have taken every precaution we can to protect public health, while maintaining ongoing operations across the company," Halo Labs CEO and Director Kiran Sidhu said. "This has been challenging and Halo has experienced delays in regulatory approvals for our North Hollywood dispensary and Bophelo, nevertheless I am pleased to report continued sales growth across our operating business units."

The company currently operates on two continents, including North America and southern parts of Africa, while it's stretching its activity over the pond aiming to cover the United Kingdom's market by the end of the second quarter in 2020.

Some of the company's quarterly milestones in Oregon include revenue of $5.1 million, an installment of additional two greenhouses at East Evans Creek Facility, and cultivation of OG DNA Genetics cannabis strains.

California's operational highlights involve the sales growth of the company's branded products, as well as the initiation of North Hollywood dispensary build-out.

Total April sales reached around $343,000, which accounted for 91% of total first quarter 2020 sales.

South African operations are concentrated around the adaptation of Lesotho's 200-hectare cultivation space and harvesting activities in the greenhouse at Bophelo.

In March, the company acquired Cannalift Delivery Inc., internet software and services start-up developing a delivery application.

The deal was worth $3.41 million of Halo's common shares at a deemed price of 11 cents per share.

A week later, Halo Labs closed the concurrent private placement of its shares at 11 cents per share for revenue of $700,000.

The estimations are the build-out of the application will be completed by the end of second quarter of 2020. When launched, it will distribute medical cannabis products, delivering them from local dispensaries to consumers.

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