Halo Collective Inc. (“Halo” or the “Company”) (NEO: HALO) (OTCQB: HCANF) (Germany: A9KN) today announced its financial and operational results for three months ended September 30, 2021 (“Q3 2021”).
Third Quarter 2021 Financial Highlights:
- Revenue of $8.7 million, up $1.9 million, or 28.0%, compared to $6.8 million in Q3 2020, including the sale of over 9.2 million grams of cannabis products principally to dispensaries in Oregon and California, a 620% year-over-year increase.
- Organic revenue growth was 9% despite a significant downturn in both the California and Oregon markets.
- Adjusted gross profit1 was $2.3 million, or 26.5% gross margin, compared to $2.4 million, or 35.7% gross margin, in Q3 2020.
- Adjusted EBITDA1 of $(4.5) million compared to $0.5 million in Q3 2020 and $(4.4) million from Q2 2021.
“The difficult conditions in our California and Oregon markets are having a short-term impact on our financial results but not on our determination to make the Company profitable and boost shareholder value,” said CEO Kiran Sidhu. “We are actively executing a four-pronged strategy consisting of growing our wholesale business in California and Oregon, launching California retail in Los Angeles, streamlining costs and monetizing equity positions in Akanda, Triangle Canna and HaloTek. Even with the strong headwinds in both California and Oregon, we believe that we have a path to profitability in 2022.”