Halo Collective (HALO.E) agreed to a deal to acquire Oregon-based cannabis cultivator, William’s Wonder Farms, according to a press release.
Technically, the deal is through their subsidiary, ANM, and will include all of their trademarks, light dep flower, licenses. The agreements will increase Halo’s total cannabis canopies in Oregon to 11 for the season, including three at William’s Wonder, six at East Evan’s Creek in Jackson County, one more of pre-purchased cannabis in the Applegate, and one in Fall Creek’s Winberry Farm. William’s Wonder is a well-known, established brand in the Portland scene where more than 70% of their sales happen.
“With this acquisition, we now will add significant cultivation capacity in Southern Oregon while acquiring a great brand known for its high quality products, as well as a top-tier outdoor and greenhouse genetics library. We are honored to bring William Hill, a pioneer in the Oregon cannabis market, into the Halo family. As a result, Halo plans to significantly expand William’s product offerings,” said Kiran Sidhu, CEO and co-founder of Halo.
Halo is a vertically integrated cannabis company involved in the cultivation, extraction, manufacturing and distribution of cannabis flower, oils and concentrates. They boast having sold approximately nine million grams of oils and concentrates since inception. They’re always on the hunt for ways to expand and scale, generally through facilitating partnerships with trustworthy participants in the industry. They’ve since expanded to California and Oregon markets, and overseas to the Kingdom of Lesotho in South Africa, and the United Kingdom.
The company sells products to dispensaries in the United States using the brand names Hush, Mojave and Exhale, and under partnership or license with DNA Genetics, Terphogz and FlowerShop.
The planned acquisition of William’s Wonder Farms will permit Halo to:
- Increase Halo’s genetics library by offering more exotic strains.
- Increase Halo’s total owned and managed cultivated acreage to 11 acres of outdoor cultivation in Oregon, creating one of the larger cultivation companies in the state.
- Cultivate fresh, high-quality flower year-round in greenhouses producing light dep flower nine months out of the year.
- Provide space for Halo to potentially add two more Tier 2 managed licenses on the William’s site to bring the total to 5 acres of outdoor and greenhouse cultivation at Williams.
- Add a wholesale license on-site to serve as a hub for flower processing, trimming, and other ancillary services for all Halo’s Southern Oregon farms.
- Add six more greenhouses for more year-round light dep cannabis, increasing overall yearly flower sales.
- Add a line of pre-rolls and concentrates to the excellent William’s Wonder brand. Pre-rolls and concentrates made up over 20% of retail sales in the Oregon market in 20201. By adding new SKUs in these categories, William Wonder brand, itself, is poised for growth.
Here’s what the finances look like:
The unaudited year end results for 2020 have William’s Wonder products pulling in over USD$2.4 million with an earnings before interesting, taxes, depreciation and amortization (EDITDA) of $600,000. In the first three months of 2021, sales are over $800,000, with an EBITDA of over $300,000.
- Source: stockwatch.com
Shares are flat at $0.04 today, which looks like a reprieve given the general trajectory of the price over the past two months.