Halo Labs Inc. (NEO:HALO) (OTC:AGEEF) (FRA:A9KN) just announced a major distribution agreement with one of California’s largest full-service cannabis product distributors, Nabis, to supply California dispensaries with Halo’s full assortment of branded products.
This agreement provides Halo with distribution coverage across the entire state of California. Here’s what investors need to know.
Halo’s New Distribution Through Nabis
Nabis currently distributes over 60 leading brands, including Cresco, Candnescent, and more to over 650 dispensaries throughout California while providing an intuitive online platform that brings simplicity and efficiency to the cannabis supply chain.
“We are excited to announce our partnership with Halo Labs and further grow their business with our network across the state,” said Jun S. Lee, President of Nabis. “As a leading manufacturer of oils, their innovative thinking and quality of product is unmatched and we’re proud to broaden their footprint within California.”
David Orr, Chief Revenue Officer of Halo Labs, commented, “Partnering with Nabis is an excellent step in expanding Halo’s retail distribution reach in California. Nabis’ existing footprint and industry leading logistical expertise will help support our efforts to rapidly expand our in-dispensary presence in Northern California and build on our current footprint in Southern California.”
As a technology-driven company, Nabis manages logistics using its proprietary cannabis-compliant software system, offering certainty as well as a “lightning-fast distribution network for the fulfillment, storage, and sales of wholesale cannabis products.”
Unlocking California, Nabis gives Halo Labs even greater access to the United States’ largest cannabis market, which is forecasted to hit $7.7 billion by the year 2022. That being said, this with Nabis deal isn’t the only big news Halo announced this week.
Halo Labs’ news with Nabis comes on the heels of Halo Labs’ prior announcement regarding the launch of XES Sensual, the first sexual wellness system with an integrated applicator, specifically designed to deliver a CBD formulation through a vaginal application.
According to Halo’s release, “XES Sensual is the first sexual wellness product that features both an applicator and serum and applies cannabinoid science to promote sexual pleasure.”
In a CBD market full of tinctures and gummies, XES Sensual certainly brings something new to the table.
Halo Labs plans to roll out XES Sensual both direct to retail with the company’s new and existing salesforce in California, Oregon, and Nevada and to online outlets. XES Sensual will be the first in a comprehensive line-up of other cannabinoid-based, innovative products that aim to boost sexual wellness.
According to a report published in April 2019 by Arizton Advisory & Intelligence, the global sexual wellness market is expected to reach revenues of around $39 billion by 2024, growing at a CAGR of over 7% during 2018 − 2024. The retail segment, comprising mass-market retailers, drug stores, specialty stores, and grocery stores, accounts for more than 60% of the sexual wellness market’s sales.
This is combined with estimates from Grand View Research showing that the global cannabis extract market size was estimated at USD 5.3 billion in 2018 and is projected to exhibit a CAGR of 22.1% from 2019 through 2025.
Between the two markets, Halo is well-positioned for growth. Be sure to subscribe to updates here so you never miss an important development.
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