Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) (Germany: A9KN) lost money this quarter because of a significant downturn in the California and Oregon markets.
On Tuesday, the cannabis producer announced its financial results for the three months ended June 30 and reported a revenue of US$6.9 million which is a 9.2 per cent decrease from $7.6 million in the first quarter.
The company reported a gross profit of US$2.1 million which is around twice as much as the US$1.4 million in the first quarter. It had an adjusted EBITDA loss of US$4.1 million from US$3.9 million in the first quarter. Halo repaid $7.7 million in debt financing and raised $8 million from convertible debentures.
During the quarter, the company decided not to build out Ukiah Ventures and sold the land for US$1.53 million. By the end of the quarter, the company had an unrestricted cash amount of $1.6 million.
Company stock went up on Wednesday by 9.6 per cent to US$0.14 on the OTC Market exchange.
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CEO Katie Field said they are doing important work for Halo’s next operational phase aimed to have a strong position on the West Coast.
“We are sharpening Halo’s strategic focus, operating smarter, and have transitioned leadership to a new team who will carry out the refreshed plan,” said Field.
“The goal is to leverage our existing assets with a focus on near-term payback, which has led us to take numerous actions across the Company to improve operations and shed non-productive assets.”
Field said that the company has de-emphasized other areas such as bulk wholesale flower and trim sales which generated good revenue but lower profitability.
“And, we have made the decision to walk away from other parts of the plan altogether such as the Ukiah Ventures buildout and Canadian retail.”
Halo is a vertically integrated cannabis company operating cultivation, manufacturing, distribution, and retail assets in Oregon, California, and Alberta.
natalia@mugglehead.com