After the bell tonight, Halo Labs (NEO: HALO) reported Q2 Earnings. Revenues for the first half of 2019 were $18.2M and $9.5M for the quarter representing an approximate quarter over quarter increase of 10%.
For the Six Month Period, the three segments breakdown as:
Oregon (ANM): Revenues were $5.6M, gross margin of 11.8%,
operating loss of $1,383,689
Nevada (HLO): Revenues of $1.3M, gross margin of -1.8%, operating loss of $727k
California (Coastal Harvest): $11.2M, gross margin of 30.7%, EBITDA of $2.7M
The aggregate total gross margin was 20.2%
The company reported a net operating loss of $4.1M for the quarter and $7.0 for the first half of 2019. The company lost approximately $7.2M and $9.2M in Operating Cash Flow for the quarter and the half.
Halo also announced they intend to complete a debt settlement with one creditor to retire an aggregate of C$2,009,816 of indebtedness in exchange for the issuance of 5,911,222 common shares of the Company at a price of C$0.34 per Debt Settlement Share. The indebtedness is held by arm’s length parties.
Certain employees and independent contractors of the Company have agreed to accept common shares in lieu of the cash compensation. The total aggregate amount of cash compensation to be satisfied is C$4,107,189, which will be satisfied through the issuance of 11,436,961 Compensation Shares at an average price of C$0.36 per Compensation Share.
A snapshot of the companies financials include:
Interestingly, the company has seen a large increase in receivables over the last 6 months:
The company also has a convertible debenture due April 4, 2022, of which approximately 38% of the debentures have already converted (8,083 of 21,163 debentures). The debentures have an 8% coupon and convert at $0.65. The company may force the conversion of the principal amount should HALO’s average trading price be equal to or greater than $1.35 per common share for 10 consecutive trading days.
Information for this briefing was found via Sedar and Halo Labs. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. Today he consults with microcap companies helping them with capital markets strategy and focuses on industries including cannabis, tech, and junior mining.