Halo Labs Inc (NEO:HALO) Site Tour: Mass Producing Oil and Shatter
Halo Labs Inc (NEO:HALO) (OTCMKTS:AGEEF) (FRA:A9KN) is a Multi-State Operator with a major emphasis on extraction. The company also have seed-to-sale operations in Oregon starting with their 6 acres + outdoor cultivation farm in Medford Oregon. Halo is focused on creating high-quality oils and other distillates from their scaleable and repeatable extraction labs. They currently have labs in Oregon, California and Nevada. The Midas Letter Film crew took a look behind the scenes enabling us to see the innovative extraction operations and plethora of consumer packaged goods they are currently selling.
Andreas Met, Founder, Chief Operating and Compliance Officer, Director: We here are in the Emerald Triangle, which is where about 60 to 70 percent of all the marijuana consumed in the United States is grown. It’s the biomass that makes the final product that we do, which is extracts.
The care and love that we put into the grow-op here is really what makes the quality so high.
Kiran Sidhu, CEO & Director: We take the whole plant and use it, including the A-buds, the B-buds that most people typically don’t do.
Andreas Met: We’re extremely good at producing mass amounts of oil very efficiently.
Kiran Sidhu: I don’t know of many companies that are selling up to 50 skus and five to ten different strains of every type of oil and concentrate.
Andreas Met: This company started in a chicken coop, did you know that? In a chicken coop the size of that room right there.
Kiran Sidhu: Flash forward three years, and look where we are now.
Andreas Met: And that’s what this company has become, $100 million market cap. Pretty fucking amazing, isn’t it?
This is a happy place. I’m Andreas Met; I’m a founder of Halo Labs, and the Chief Operating Officer. Today we’re out at the East Evans Creek grow site; it’s a six-acre grow site that we use to grow flower to put into our processing.
The difference between growing indoors and outdoors or under greenhouse in here is that we grow fewer, larger plants here. We’re just basically creating a mass canopy. That smells good, too.
These plants will be, on average, six to eight feet tall by the time they’re done. They’re going to put out about three to five pounds each of biomass.
We are doing an organic grow here. If you look closely, you’d see bugs flying around; this is an ecosystem, here, and we want a vibrant ecosystem because in vibrant ecosystems where there’s a tremendous amount of biodiversity, you have a better result in life. And that’s expressed in the plants here.
We’re expecting to grow about 12,000 to 18,000 pounds of flower this season, and the plants are looking just fantastic.
Brandi Gutierrez: Hi, welcome to Halo Labs. You are in our Cathedral City manufacturing facility. This is where we produce all of our bulk distillate for California.
This is where we bring in our biomass, and we begin extraction.
Post-extraction we trot through here for refinement.
What he’s doing right there is filtering out the bulk of our fats and waxes.
After material is blasted, it has residual solvent – in our case, butane and propane. And so we put that material in this oven and we pump off the residual solvent.
This is where we bring in our final products.
Manufacturers do different things with this material. For example, you can send this to an edibles company; it’s been used for vape pens. Halo as a whole, we make our own retail products, however we don’t do that here in California.
Andreas Met: We have an operation in Nevada which is based in Las Vegas, and we have an operation in Oregon.
Kiran Sidhu: Welcome to Medford, Oregon. We’re in a beautiful 16,000 square foot facility.
This is shatter. We are the Number One producer of concentrates in Oregon by quantity and dollars sold.
Right now we’re selling well over $1.2 million a month.
Brand is a very important component, because about 50,000 people a month use our products. But what we’ve done with brand is, we’ve stratified it. So at the highest tier, we have our Gild; at the second tier, we have our Exhale, then we have Mojave, and then we have Hush, which is our everyday value brand.
I’m very, very excited about the future. There’s all these new products coming out, like the DabTabs…
Michael Lindars, ILO CEO & Co-Founder: We noticed that certain materials actually held the oil in a way that you could transport it and not have it be sticky.
Kiran Sidhu: And I said, Wow, that’s really cool! That’s a great product on its own, Michael. I think that really has legs.
Michelle Lindars, ILO Director of Communications: It could be shatter, it could be live resin, it could be distillate, it could be butter, wax…it just would be put into DabTabs and sold in that form. With that sort of heat buffer that it creates, you’re really getting full flavour, the full spectrum.
Kiran Sidhu: It makes it much more portable, exchangeable, and it makes it a fun experience, too. This is the GO, which is a cartridge. Fits on any 510-thread battery. There’s your CBD. And that’s legal in all 50 states.
Cannabis oils and concentrates allows you to differentiate yourself. We’re coming out with live resin sauce pens, we’re coming out with clear shatter, where all the core fill’s gone but the flavour remains. So, innovating our products will allow us to stay ahead of the game.
In 2019, we’ve seen a dramatic turn in the stock market, where stocks are down 75 percent. We’re still up year-to-date.
To me, I think our stock is undervalued, and I think we’ve got a lot of room to grow.