Halo Labs Stands Up for Federal Cannabis Legalization and Cross-Border Trade

With a Democratic majority in the House and Senate, cannabis companies across the country are keeping their fingers crossed for federal marijuana reform, many hope that the plant will be legalized within the next four years. One such Oregon-based company said it has been planning for legalization since its inception and hopes to be ready when cannabis can be sold across state lines.

To Halo Laboratoriesa cannabis extraction company that recently expanded into flowers and pre-rolls, CEO Kiran Sidhu and President Kathryn Field both hope the company’s vertical structure and strategic locations put it in a position beneficial if President-elect Joe Biden chooses to deprogram cannabis — something he can do with the stroke of a pen.

The company has a significant presence in two West Coast cannabis markets: the state of Oregon, where it was founded in 2016 and is among the largest growers and distributors, and California, where Sidhu says (without ironically) that society “grows like a weed”. ”

“A big fish” in Oregon

While in the past Halo focused on building value-added brands like Exhale, Mojave and Hush, an acquisition in December expanded Halo’s product offering. This acquired 100% organic cannabis grower Winberry Farms, one of the first producers to receive a recreational license in Oregon. Between the two companies, Sidhu said Halo has a large share of distribution in the state and now has brands under its umbrella “that serve every consumer.”

“Prices have recovered and it’s a very strong market,” he said when asked about the state’s situation. cannabis overabundance problemwhich was at its peak in 2019. The recovery in prices, he said, is partly thanks to the work of the Oregon Liquor Control Board which slowed the issuance of new licenses and shut down business illegal.

“Oregon is one of the most mature markets in the country as one of the first states to legalize the recreational level, and the fact that it has seen the rise it has seen in a sustained manner says that. long,” said Field, who noted that despite the fire season, 2020 has been a great year for some outdoor growers in the state, including Halo which saw a record harvest.

The work of the OLCC, along with Oregonians’ increased appetite for cannabis amid the Covid-19 pandemic, has resulted in significant growth for both the state’s recreational cannabis industry and the business in 2020: Between January and November, more than $1 billion in retail sales revenue was generated in the state.

According BDS Analysis, between November 2019 and November 2020, sales in the State’s concentrates category increased 46% year over year, while Halo’s concentrate brands (Hush, Winberry and Exhale) increased almost five times the market average in the same framework. Two Halo brands, Hush and Winberry, were also among the top 10 selling cartridge brands in the state.

While the state may not have California’s reputation for cannabis, Sidhu said there’s a major upside to keeping the majority of his operations in Oregon: cultivation taxes are lower. , meaning the cash-flow-positive business is able to grow cannabis at a cost of just $200 per pound, less than half the cost in other legal states according to the CEO.

California, Nevada and the possibility of cross-border trade

In 2019, the company is growing in Californiawhere it manufactures cannabis concentrates and oils in its 15,000 square foot facility in Cathedral City, then sells them to licensed wholesalers and retailers.

Then, in September, she launched her brand of infused gummies Hush in the state and partnered with a genetic powerhouse. Green Matter acquires Bar X Ranch in Lake County, where Halo plans to grow up to 60 acres of cannabis outdoors and another 20 acres in greenhouses. According to Sidhu, it will be the largest such site in the region.

“Right now our products are in the middle, but we’re going all the way in California,” Sidhu said. Upon completion of its grow park in Ukiah, an agreement signed by Halo with Zkittlez in August, he hopes to see Halo among the top growers in the state soon.

While the CEO admits the company has been criticized for being “too big and too complicated,” he’s confident that in 2021, the focus on Halo’s existing presence in Oregon and California will make it a multi-state operator to watch in the United States, especially if the State Cannabis Trade Law gain support. He said the company has no plans to expand into other states.

“What oranges and grapefruits are to Florida is what cannabis is to southern Oregon and northern California,” Sidhu said. In today’s state-to-state market, he said, states in other parts of the country simply don’t have access to the same quality of cannabis.

“When we started the company, we set it up by planning for federal legalization at our major main campuses. Our vision is to send products east,” he said.

Although this vision may be far in the future, Sidhu and Field believe they will be able to sell to neighboring states. California and Nevada sooner than most people think: Governor Kate Brown, Senator Ron Wyden and Rep. Earl Blumenauer have all voiced support for legislation that would allow Oregon cannabis growers to export their products out of the state.

While federal legislation that would allow interstate cannabis activity without federal oversight hasn’t gained traction in Congress since it was first introduced in 2019, company executives believe the recent policy shift could change that.

“I think when you move the industry forward, there are two things to look for,” Field said. “Being in Oregon and California, there’s nowhere else you can grow at quality and scale. We see it as a marriage of both low cost production and high quality, and it’s a winning formula when it comes to serving the industry of the future.