Advertisement / Advertisement
It seems like Halo Collective (NASDAQ:HAL) has seen its bottom and is on the verge of a turnaround.
That could be related to mounting signs that Halo shareholders are in for a double spinout that could result in an extreme re-rating of the company. A brand-fresh article provides a deep insight!
Halo Collective (NASDAQ:HALO) (currently less than $40 million) has two assets, its stake in Triangle Corp. and those held at Akanda Corp. which, according to the indications, are each on the verge of an IPO (which should be associated with a strong injection of capital) on a main stock exchange. Only the Triangle Corp. should be valued at $240m at IPO (more on that below). But Akanda is also apparently setting the course for a similar scenario:
Source: marketwatch.com
From the article (translated): Right now, Akanda is a unit of Toronto-based cannabis company Halo Collective Inc, but it's becoming an independent company that includes the international assets of Halo, Bophelo, and CanMart. The deal is expected to close by the end of this month.
CEO Virk declined to comment on whether, like Canopy and Tilray, it is seeking a US listing. AND THAT'S JUST AS WELL! Because it is forbidden to talk about such a process without the blessing of the US Securities and Exchange Commission. But the commitment of Boustad Securities, which also got an idea on site in Lesotho, speaks a clear language. So I assume that this suggestion to bring Akanda to a main exchange will be announced and realized in the foreseeable future. This should be extremely positive for Halo Collective's (NASDAQ:HLO) stock.
I could easily imagine a starting valuation of $200m for Akanda (after a $50m IPO funding). For Halo Collective (WKN: A3C9VV) as a major shareholder, at least a value of USD 100 million should be realistic within this scenario. I would expect similar value from an IPO of Triangle, California's largest cannabis farm, in which Halo owns a 44% stake!
TOP SECRET! THIS INFORMATION HAS NOT YET BEEN DISCLOSED THROUGH PRESS RELEASES BY HALO COLLECTIVE (NYSE:HALO COLLECTIVE).
The fact that this IPO should be imminent is further underlined by a recent tweet from Triangle (Link). The Triangle Corp. owns Die Bar-X Farm with a land package of 647 hectares, of which 25 hectares (62 acres) are already licensed by the California CDFA (California Department of Food and Agriculture) for cannabis cultivation (this detail is not yet public) . As such, Bar-X Farm is by far the largest single permitted cannabis site in California.
source presentation
The Triangle Corp. is far ahead of well-known listed companies such as:
source presentation
On the US Securities and Exchange Commission's side, Triangle Canna Corp., which is 44% owned by Halo Collective (NYSE:HAL) released a document (link).
Source: sec.gov
Triangle's value at the IPO would be around $240 million. Halo Collective (NASDAQ:HALO) should be worth exactly $72.6 million (CA$90.1 million), which is well above Halo's current stock market value of under CA$50 million.
CONCLUSION:
If the proposed funding goes as planned, then with $75 million in the bag, Tringle would have an easy time making the necessary preparations for the 2022 cannabis planting season, meaning it can expect a massive yield in its first year. The plan is to have 62 acres of "outdoor" cannabis and 17 acres of greenhouse cannabis. Responsible for this will be Jed Morris, who is Founder and Executive Chairman of Green Matter Holdings, California's eighth largest cannabis company by area (40 acres).
Taking a look at Trulieve Cannabis Corp's stock market valuation. (CSE: TRUL), Curaleaf Holdings (CSE: CURA) or Columbia Care (NEO: CCHW) with valuations of CAD 1.8 billion to more than CAD 8 billion, which are far behind Triangle Corp. in terms of area. lag behind, then you can see the potential very quickly. Taking this into account, you can speculate on a tenfold increase in the value of Triangle without exaggerating. Since it can be assumed that after a USD 75 million infusion no further capital measures are likely to be necessary, the holding value of Halo Collective (WKN: A3C9VV) can remain constant, so that a value of CAD 900 million is not considered seems implausible, nearly 20 times higher than Halo's current stock market value.
HALO COLLECTIVE INC.*
WKN: A3C9VV, NEO: HALO
COOL THING: WITH AN ACCOUNT AT SMARTBROKER YOU CAN TRADE THIS STOCK FROM 0 EURO. - A BROKER CHANGE OFTEN PAYS OFF!!
This offers a gigantic opportunity for the investor, because Halo Collective (WKN: A3C9VV) undoubtedly has the greatest potential in the entire "cannabis cosmos" in my eyes! The company is currently generating quarterly sales of USD 9-10 million, exceeding its own sales forecasts.
Apart from the existing and constantly growing US business, there are assets that are dormant in this company that cannot be surpassed in size. These can be summarized in three categories:
ARCANDA:
Halo Collective (NASDAQ:HLO) is on to its assets
into Arkanda Corporation, led by former Canaopy manager Tej Virk. Rumor has it that Akanda Corp. sought a Nasdaq listing with the help of Boustad Securities. In the course of this, the necessary funds for the expansion of the 200 hectare planting capacity are to be raised.
Bophelo has only recently achieved GACP producer status and is eligible to export to the EU. A first contract with the German Cantourage GmbH was signed.
A few weeks ago, the Boustad Securities managers were guests in Lesotho and got an idea of the situation on site.
Even after Arkanda's Nasdaq listing, Halo Collective (NASDAQ:HALO) should still be a major shareholder (~50%) and a valuation of $150-200 million is quite conceivable.
Canmart Ltd. in the United Kingdom already has numerous licenses required for import and operates a likewise licensed 25,000 square foot (over 2,300 sqm) logistics warehouse in the south-east of England. Canmart already has wholesale and specialty licenses granted by the Medicines and Healthcare Products Regulatory Agency.
TRIANGLE
Halo Collective (NYSE:HAL) owns around 50% of California's largest cannabis farm, Bar-X Farm! The necessary licenses have been applied for and preparatory work has begun. A critical point in California is always the search for water (which will be necessary to irrigate the cannabis plantation). - Here one was more than just successful: The freshly drilled water source delivers 4,500 liters per minute!!!
Here, too, it is rumored that a separate listing on a main stock exchange is also being sought for this unit. A valuation could also be in the $150-200m region.
CALIFORNIA EXPANSION:
There are big plans in the US main market in California:
In late 2020, Halo Collective (NASDAQ:HALO) inked a highly anticipated partnership with FlowerShop*, a conceptual wellness brand, and along with partner and key member G-Eazy, an American rapper and producer from Oakland, California, now formed FlowerShop on sale!
The recently launched online sale, which was limited to the Bay Area near Los Angeles, proved to be a complete success. The products were sold out within a few hours.
Current photo: G-Eazy + Halo Labs CEO Kiran Sidhu
Going forward, Gerald Gillum aka G-Eazy will be the brand ambassador for FlowerShop, a brand created by G-Eazy management. FlowerShop's cannabis products are produced exclusively by Halo Collective (NYSE:HAL), and Halo also has an interest in FlowerShop. .
G-Eazy achieves an enormously broad impact due to its level of awareness (around 20 million followers on the social media channels in total)! He's a top-notch influencer, and that should show in the form of skyrocketing post-brand sales.
"Dispensaries" are the cannabis sales businesses and represent one of the highest-margin businesses in the cannabis industry. Halo Collective (WKN: A3C9VV) wants to open 10 high-end stores with the name "Budega" and an attached delivery service.
Halo Collective (NYSE:HAL) recently announced that it has started construction of its first shop and is expected to open later this year.
CONCLUSION:
Taking a look at the sober numbers, one can't help but attest to a large degree of undervaluation of Halo Collective (NYSE: Halo Collective), and one should inevitably conclude that an investment in Halo stock might be a might be a great idea.
You can find the original report HERE.
Helmut Pollinger
*Please note the following information on the conflicts of interest definitely existing at bullVestor with regard to this publication as well as our risk information and our disclaimer
Subscribe to my free newsletter
Risk Warning and Disclaimer
We expressly point out that we assume no liability for the content of external links. Every investment in securities involves risks. Political, economic or other changes can lead to significant price losses. This applies in particular to investments in (foreign) second-line stocks and in small and microcap companies. Due to the low market capitalization, investments in such securities are highly speculative and involve a high risk, up to and including the total loss of the invested capital. In addition, some of the stocks presented at bullVestor are subject to currency risks.
The background information and market assessments published by bullVestor for the German-speaking area were created in compliance with the Austrian and German capital market regulations and are therefore intended exclusively for capital market participants in the Republic of Austria and the Federal Republic of Germany. Other foreign capital market regulations were not taken into account and do not apply in any way. BullVestor's publications are for informational purposes only and expressly do not represent a financial analysis, but are promotional texts of a purely advertising nature for the companies discussed, which pay a fee for this.
No consulting contract is concluded between the reader and the authors or the publisher through the purchase of the bullVestor publications. All information and analyzes do not represent an invitation, offer or recommendation to buy or sell investment instruments or for other transactions. Every investment in shares, bonds, options or other financial products is associated with risks, some of which are considerable.
The editors and authors of the bullVestor publications are not professional investment advisors. It is therefore essential that you always seek advice from a qualified specialist (e.g. your house bank or a qualified advisor you trust) when making your investment decisions. All information and data published by bullVestor comes from sources that we believe to be reliable and trustworthy at the time of writing. However, no guarantee can be given with regard to the correctness and completeness of this information and data.
The same applies to the evaluations and statements contained in bullVestor's analyzes and market assessments. These were created with due care. Any responsibility or liability for the correctness and completeness of the information contained in this publication is excluded. All statements of opinion made reflect the current assessment of the authors, which can change at any time without prior notice. There is expressly no guarantee or liability that the price or profit developments forecast in the bullVestor publications will occur.
Conflicts of Interest Disclosures
The publisher and responsible authors hereby declare that the following conflicts of interest exist with regard to the company discussed in this publication at the time of publication:
Imprint:
bullVestor Medien GmbHGutenhofen 44300 St. Valentin AustriaTel: +43 7435 54077-0 Company registration number: FN275279yManaging director and 100% owner: Helmut PollingerPlace of jurisdiction: St. Pöltenkontakt[at]bullvestor.at- advertisement -
Values included: CA40638K5070
