Hey Buildit, my apologies, first I suggested y
Post# of 41
my apologies, first I suggested you this stock and then I did not reply to your messages.
Yes, I have about 200k shares of HALO and I follow this company's story quite closely. So here are my answers to your questions:
1) I read about these suspecisions as well, and I doubt that this is really true. Why? Because Kiran Sidhu is the largest shareholder of us all, and besides the fact that he receives all his salary in shares, he additional, personally purchased extra HALO shares off the regular market a couple of weeks ago. So I very much count on the fact that he will only make deals that are in the best interest for himself and thus for all of us HALO shareholders.
1 a) Besides my statement from above. Let's just have a look at the most recent purchases that he has been able to close.
They all seem to make a lot of sense to me. Take the Bophelo deal first. The majority of investors still do not seem to realize the magnitude of this deal. Lesotho seems to have gotten into the focus of a lot of Canabis producing companies, because of the favourable climate, the availability of plenty of water and cheap work force. The climate itself would allow the growth of hemp out in fields (not greenhouses required), this in combination with cheap work forces and the fact that they have made sure that they have their production certified such that they produce medical grade canabis, turns them into a cheap mass producer of this high grade of canabis. Bophelo itselfs is the only holder of a license to use 200 hectars to produce canabis on. So with this acquisition HALO will eventually turn into the largest producer of medical grade canabis ON THE PLANET. This is not yet the case, because they have a 3 stage development plan that will last for 3+ years, before the full 200 hectars will be cultivated. But the COO, Andreas Met, already has or will soon move to Lesotho to run the show based in south central Africa. He has a track record, to be able to do such developments as he demonstrated for the plants in Oregon that he built out from scratch as well. In addition, they are at least in negotiations with local banks to finance the build out. And they have a very favorable location, such that they can sell their product, to South Africa, NewZealand and Australia, as well as into Europe.
Just to put this into perspecticve. HALO was already able to close a first purchase deal of canabis product worth $30 Mill. with a company on the island of Malta.
Now let's look into the acquisition of Canmart in the UK. This is a very important strategic acquisition, because it provides the gateway into at least Great Britain, for the Canabis produced in Lesotho, since Canmart already has all the necessary licenses to import canabis into the UK. In addition it has at least one larger warehouse in southern England and established distribution channels.
Now let's look into California and Oregon. Last year was a very difficult year for HALO, because of the so called "Vape Crisis", where some vaporizor systems (not those of HALO, but from competitors), have caused serious health conditions and thus the governor of Oregon banned all these vaporizor systems to protect the habitants, until this was fully understood. This has basically shut down the entire canabis market in Oregon for more than 12 months. During the current year, they have now started ramping up their business again and announce one record sales month after the next.
Because business is ramping up so well, they recently purchased that ranch with properties in southern Oregon and northern California, which will be turned into yet another canabis plant. This acquisition is based on mostly debt financing by the way.
Talking about Outergalactic chocolates, is yet another different way to sell their canabis products.
Talking about streamlining their business. During the last18 months, they have worked hard to streamline their business, increase their productivity, while, at the same time, reduce their costs. Most important example, the cleaning process that they have developed in order to turn their waste into salable product. During the processing of their product, some parts of there canabis oil had too high levels of remaining toxins (all other canabis processing companies have a similar issue) and thus usually spend money on disposing that toxic waste. They have develped a process to clean that oil of the toxins, reducing it to a level well below the allowed thresholds and turn the waste into salable product. So instead of spending money on the disposal, they spent less money on the cleaning and end up with product that they are now able to sell. In addition, they can either offer that cleaning service to competitors, or purchase the waste and trun that also in to product that they can sell. In each case, they can make additional profits from that.
All of that makes a lot of sense to me, and in my view has very little to do with back room deals that would only benefit a few and happens on the expense of us, the majority of HALO shareholders.
2) Expectation of an RS? Well, most of the acquisitions actually happened in exchange for shares. Kiran repeatedly answered questions about the WHY those stock only deals, with very reasonable answer. He stated several times that the "vape crisis" taught him and important lesson. That the canabis industry can easily get into trouble, and thus he does not want to have a whole lot of debt, as of now, in the development stage of the company, that he needs to service, and would quickly get into default on, as it happened for a whole bunch of other companies involved in the canabis industry, that he can now acquire for pennies on the dollar. As long as he is adding value to the company with those acquistions, it is acceptable that additional shares are issued for that. A lot of these deals are actually carried out based on negotiated higher share price than HALO shares are currently traded on the exchanges. This means that the value added is higher than the number of shares added. So in my view, HALO is currently significantly under valued, and thus once all the pieces of the puzzle that Kiran has acquired more or less recently are fit together to the larger enterprise that he has envisioned, the sales, revenues and profits will speak for themselves and thus, eventually the share price will take care of itself.
Should additionally, Joe Biden, become the next president of the USA, it is likely that he will legalize canabis in the entire US (at least so he states publicly now), which will immediately move the entire Canabis industry out of the twighlight of being illegal. With HALO being on the verge of becoming one of the major players in this industry, being a HALO investor at these low share prices will be a huge asset. So the lower the pps gets, the more shares I will acquire.
Kiran also stated several times in various interviews, that it will take him 12 to 18 months to fit all these acquisitions together and make them profitable. So we should give him and the company a little more time and be more patient with him.