Halo Collective Inc (OTCMKTS:HCANF) Reports Of $5.1 Million In Q4 2020 Revenues

Halo Collective Inc (OTCMKTS:HCANF) reported a growth of 88% YoY to $5.1 million in Q4 2020. The company’s full-year revenues are declined by 23% YoY to $21.6 million in 2020. Its gross profits improved by 11% YoY to $2.3 million in Q4 2020.

The loss on biologic assets reduced to 15% in 2020 compared to 51% in 2019. The company also lowered the overhead costs to $3.1 million (down $0.35 million YoY) in Q4 2020. Halo Collective holds a cash balance of $3.7 million at the end of 2020.

Kiran Sidhu, Co-founder and CEO of Halo Collective, the company strengthened its product line in 2020. The company expanded its flower products and improved availability in California and Oregon.

In 2020, the subsidiaries of Halo Collective, like Mendo Distribution and Transportation LLC and ANM Inc, have posted strong performance. ANM posted a growth of 117% to $4.1 million in 2020. Halo Collective has not included the revenues of $1.4 million reported by Mendo Distribution in its 2020 earnings.

Plans to enhance prices

By consolidating its revenues, Halo Collective expects to improve its financial performance significantly. The company expects to improve prices by adding pre-rolls, high-end cartridges, and edibles to its product line.

Halo Collective also plans to improve the potency of its products using the recently purchased patent-pending technology. The company improved margins by selling more grams in 2020 compared to any of the previous years.

Halo Collective will focus on improving topline growth despite the changes in the market conditions.

Co-founder and CFO of Halo Collective, Philip Van Den Berg, said the company showed its capability in 2020 to strengthen growth, maintain financial discipline, and the potential of its portfolio. It lowered biological assets-related losses and improved margins. In the year 2021, the company expects to reverse price compression and boost profits.

Spins off Tek Assets

Halo Collective plans to spin off its Tek Assets like software, devices, and IP into a separate company called Halo Tek Inc.

Halo Tek will become a wholly-owned subsidiary of Halo Collective. Following the spin-off, Halo Tek will own IP and assets of Halo Dispensary Track Software Inc, Halo AccuDab Holdings Inc, Halo Nasalbinoid Natural Devices Corp, and Halo Cannalift Delivery Inc.

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