Halo Labs Quarterly Revenue Down 49% After Factory Shutdown
Halo Labs Quarterly Revenue Down 49% After Factory Shutdown
(Bloomberg) -- Cannabis manufacturer Halo Labs reported a 49% slump in revenue to about $4.5 million in the first quarter of 2020 compared with the same period last year.
A key driver of the decline was the shutdown of operations in Cathedral City, California to conserve working capital after a series of vape-inflicted lung injuries, the Toronto-based company said in a statement Saturday.
Halo Labs saw a 35% increase in grams sold across its products, yet the gain was tilted toward flower, which sells for a lower average price than oil or shatter, the firm said.
As of March 31, Halo had a working capital surplus of $8.8 million and cash of $3.8 million. The company aims to control costs and preserve cash by paying senior management in stock, and said earlier Saturday it had issued share-based payments to contractors and suppliers in lieu of cash.
Halo said it aims to close its Bophelo acquisition this year and further develop its Lesotho business.
©2020 Bloomberg L.P.