John Schroyer
International cannabis company Halo Collective Inc. (Cboe: HALO) (OTC Pink: HCANF) (FSE: A9K0) reported a punishing second quarter for 2023, including a 48% drop in revenue to just $3.5 million for the quarter that ended June 30, due to oversupply in its core markets of California and Oregon.
The company announced it was delisted from the Cboe Exchange as of Monday.
The news comes just days after Halo released its financials for the fourth quarter of 2022 and the first quarter of this year, both of which showed the company in serious decline, which continued into Q2.
In the most recent quarter, Halo cited the “challenging market landscape” before disclosing that its sales were down to just 1.3 million grams, a 31.5% decrease from the same period a year prior.
Regional revenue was down in both California and Oregon as well, Halo reported.
California marijuana wholesale revenue was down 77.7% year-over-year to $471,986, and its Budega North Hollywood Dispensary sales were down 51.6% to just $139,894. However, a new retail shop the company opened in May 2022, the Budega Westwood Dispensary, “demonstrated notable growth” with $216,960 in revenue for the quarter. The company has plans to open another Hollywood dispensary yet this year.
In Oregon, revenue was down 27.1% year-over-year to $2.7 million. But Halo also just launched Halo PDX in January, a new cannabis distribution wing, which it said represents Halo’s “commitment to enhancing its market presence and expanding its offerings.”
The company raised no additional funds in the second quarter and had zero unrestricted cash on hand at the end of June.
Halo also holds cannabis licenses in Nevada, Canada, the United Kingdom, and Lesotho, and is expanding into non-THC products in the health and wellness sector through CBD products, nutraceuticals and non-psychotropic mushrooms.
