Halo Labs Attains Record High As Cannabis Extractors Keep Rolling

Benjamin A. Smith
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Last week, Halo Labs Inc. (OTCMKTS:AGEEF) became the latest cannabis extractor to experience a major bull impulse. The Oregon-based manufacturer of cannabis oils and concentrates is currently the beneficiary of a strong news cycle, which has parlayed into robust upside momentum on record volume to close the week.

The latest press releases to froth-up the bid were twofold.

On February 21nd, Halo Labs announced that OTC Markets Group Inc. approved the trading of Halo Labs’ shares on the OTCQB Venture Market. The company’s shares commenced trading under the symbol AGEEF the following day. This was a particularly important event since Halo resides on the NEO Exchange in Canada—the least acclaimed of the Canadian exchanges where many investors will not venture.

Also firing-up investors was a second material announcement that same day, which doubled as the company’s de facto coming out party. Halo Labs reported unaudited and approximated January revenue of US$2.4 million (C$3.1M)—a record total. This was achieved despite only utilizing 50% of its capacity in its Cathedral City, California extraction facility. In mid-October, Halo Labs announced an agreement with Falcon International Corp. to supply a minimum of 50,000 and up to 70,000 g/week of bulk cannabis distillate used for vaping at US$7.50 per gram for the California market. This partnership is expected to generate between US$1.6-$2.2 million in monthly revenue, with the contract operating indefinitely in rolling 6-month extensions. The company should be running at full capacity by quarter’s end (March 2019).

With Halo Labs already generating USD $2.4M monthly without the benefit of an additional $800,000-1.1M in California revenues due to partial ramp-up, the company’s $50M FY2019E revenue forecast is seemingly in play. If so, Halo trades at a low forward multiple of about 1.46X revenues (undiluted). Fully-diluted, that number jumps to approximately 2.84X revenues—although if the unusually large number of purchase warrants (131,942,824, average exercise price of $0.737) convert into common shares, approximately $97.2 million would flow into company coffers.

Overall, Halo’s growth story is more positive news for the cannabis extractors, who’ve been exceedingly strong so far in 2019. Both Valens Groworks and Heritage Cannabis have risen by triple-digits year-to-date, with AGEEF closing the gap. Collectively, this cannabis sub-sector is the beneficiary of continuously strong news flow, punctuated by MediPharm Labs $35 million private label cannabis oil sale agreement two weeks ago. The market is seemingly discovering that the extractors are relatively cheap, with upcoming Canadian edibles (Q4) and gross under-supply acting as ongoing catalysts for sustained business growth. Although Halo Labs services the U.S. market, it too plans to enter Canada sometime in 2020.

Final Thoughts

Should Halo Labs meet its FY2019E revenue target, it would represent growth of approximately 416.66% YoY from the $12M it generated in 2018. Not bad for a company which is still in deep penny stock territory—even at all-time highs. Investors with spec capital to spare may want to contemplate conducting a deeper due diligence of the company, which boasts a scholastically-decorated management team, MedMen Enterprises distribution, Harvest Health & Recreation connection via Falconbridge International, and a second-look-worthy top line investment thesis.

Halo Labs finished Friday’s session up $0.08 to $0.61 (↑15.09%).

**IMPORTANT! BY VIEWING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Notice for Forward-Looking Information
Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such forward-looking information includes that HALO Labs Inc will be a big, successful company in the cannabis sector; that cannabis use and sales will grow and HALO’s sales along with it; HALO’s intended acquisition of various foreign companies and expansion into the US market; that extraction is and will continue to be a fast growing and profitable sector of the cannabis industry; that HALO will reach $48M in revenues in 2019; HALO’s plans to produce concentrates and sell them in various locations throughout the world; that HALO could be granted licenses to expand; and that it will be able to carry out its business plans.
Readers are cautioned to not place undue reliance on forward-looking information. Forward looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from those contemplated in the forward-looking information, and even if such actual results or events are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on HALO. Such risks and uncertainties include, among other things: that a regulatory approval that may be required for the intended acquisitions and subsequent sales are not obtained or are obtained subject to conditions that are not anticipated; growing competition for intended acquisitions in the cannabis industry; potential future competition in the markets HALO operates for sales; competitors may quickly enter the industry; general economic conditions in the US, Canada and globally; the inability to secure financing necessary to carry out its business plans; competition for, among other things, capital and skilled personnel; the possibility that government policies or laws may not permit legal cannabis sales or growth or that favorable laws in place may change; HALO not adequately protecting its intellectual property; interruption or failure of information technology systems; the cannabis market may not grow as expected; HALO’s technology may not achieve the expected results and its accomplishments may be limited; even if it is granted patents, it may not have success at licensing its technologies or sell its products at the rate expected; planned acquisitions and partnerships may not materialize because of inability to agree on terms with prospective partners or targets; HALO’s business plan also carries risk, including its ability to comply with all applicable governmental regulations in a highly regulated business; incubator risk investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal and foreign laws; and other regulatory risks relating to HALO’s business, financings and strategic acquisitions, including securities laws, trade rules, and foreign country regulation that is not the same as Canadian or US regulations.
 DISCLAIMERS
PAID ADVERTISEMENT.This communication is a paid advertisement and is not a recommendation to buy or sell securities. James West, Global Financial Network Ltd. and Midas Letter Media Corp. and their owners, managers, employees, and assigns (collectively “the Company”) has been paid by the profiled company or a third party to disseminate this communication. In this case the Company has been paid by HALO $300,000 US dollars for an article and video campaign and certain banner ads, and a budget of $450,000 is in place to place newsletters in social and other media.
This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. We have been compensated by HALO to conduct investor awareness advertising and marketing for HALO. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the profiled company. The profiled company or its affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our newsletters experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur.
We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our communications and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public and non-public sources but is not researched or verified in any way whatsoever to ensure the information is correct.
SHARE OWNERSHIP. The Company, which includes the owner and publisher of the Midas Letter may own shares and/or stock options of this featured company and therefore has an additional incentive to see the featured company’s stock perform well. The Company will not notify the market when it decides to buy or sell shares of this profiled company in the market. The Company may be buying and selling additional shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
NOT AN INVESTMENT ADVISOR.The Company and its affiliates are not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
INDEMNIFICATION/RELEASE OF LIABILITY.By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing the Company, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
RISK OF INVESTING.Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities.
Benjamin A. Smith

Benjamin A. Smith

Ben is a research analyst and capital markets professional with nearly 20 years of experience. His areas of expertise are broad-based, and include extensive knowledge of macro economics, stock/derivative trading, commodity complexes, cryptocurrencies and technical/quant analysis. He also maintains an particular affinity for U.S. politics and the macro-regulatory environment facing...
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[email protected] |

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Notice for Forward-Looking Information

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such forward-looking information includes that HALO Labs Inc will be a big, successful company in the cannabis sector; that cannabis use and sales will grow and HALO’s sales along with it; HALO’s intended acquisition of various foreign companies and expansion into the US market; that extraction is and will continue to be a fast growing and profitable sector of the cannabis industry; that HALO will reach $48M in revenues in 2019; HALO’s plans to produce concentrates and sell them in various locations throughout the world; that HALO could be granted licenses to expand; and that it will be able to carry out its business plans.

Readers are cautioned to not place undue reliance on forward-looking information. Forward looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from those contemplated in the forward-looking information, and even if such actual results or events are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on HALO. Such risks and uncertainties include, among other things: that a regulatory approval that may be required for the intended acquisitions and subsequent sales are not obtained or are obtained subject to conditions that are not anticipated; growing competition for intended acquisitions in the cannabis industry; potential future competition in the markets HALO operates for sales; competitors may quickly enter the industry; general economic conditions in the US, Canada and globally; the inability to secure financing necessary to carry out its business plans; competition for, among other things, capital and skilled personnel; the possibility that government policies or laws may not permit legal cannabis sales or growth or that favorable laws in place may change; HALO not adequately protecting its intellectual property; interruption or failure of information technology systems; the cannabis market may not grow as expected; HALO’s technology may not achieve the expected results and its accomplishments may be limited; even if it is granted patents, it may not have success at licensing its technologies or sell its products at the rate expected; planned acquisitions and partnerships may not materialize because of inability to agree on terms with prospective partners or targets; HALO’s business plan also carries risk, including its ability to comply with all applicable governmental regulations in a highly regulated business; incubator risk investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal and foreign laws; and other regulatory risks relating to HALO’s business, financings and strategic acquisitions, including securities laws, trade rules, and foreign country regulation that is not the same as Canadian or US regulations.

DISCLAIMERS

PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities. James West, Global Financial Network Ltd. and Midas Letter Media Corp. and their owners, managers, employees, and assigns (collectively “the Company”) has been paid by the profiled company or a third party to disseminate this communication. In this case the Company has been paid by HALO $300,000 US dollars for a newsletter campaign and certain banner ads, and a budget of $450,000 is in place to place newsletters in social and other media. In addition, the Company owns 40,000 shares of HALO, and will benefit from its price appreciation. This compensation and our share ownership in HALO is a major conflict with our ability to be unbiased, more specifically:

This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. We have been compensated by HALO to conduct investor awareness advertising and marketing for HALO. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the profiled company. The profiled company or its affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our newsletters experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur.

We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our communications and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public and non-public sources but is not researched or verified in any way whatsoever to ensure the information is correct.

SHARE OWNERSHIP. The Company, which includes the owner and publisher of the Midas Letter may own shares and/or stock options of this featured company and therefore has an additional incentive to see the featured company’s stock perform well. The Company will not notify the market when it decides to buy or sell shares of this profiled company in the market. The Company may be buying and selling additional shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

NOT AN INVESTMENT ADVISOR. The Company and its affiliates are not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing the Company, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

RISK OF INVESTING. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities.

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