 Hi, how's everyone doing today? This is Rich here on behalf of Rich TV Live and I'm here with a very special guest. It's Kiran Sidhu, the CEO of Halo Labs. How you doing today? Greetings from my hotel room in Baltimore. Oh wow, fantastic. Are you traveling for business? Yes, I am. We have our AGFist and we're visiting a lot of investors and now I'm in Baltimore for a news writer conference. Oh, very good. Why don't we get started right now? We have investors all over the world that are excited about learning about Halo Labs. So why don't you start off by telling us a little bit about Halo Labs? Well, Halo Labs was founded in April of 2016. Since then, we have sold and shipped over 4 million grams of cannabis oils and concentrates that in the three states we operate in, which is California, Nevada, and Oregon, and every month, 50,000 people use our products and that equates to somewhere between three and a half to four million servings a month. Wow, that's incredible. Now, that actually leads into my next question, which is which markets is Halo Labs focused on? Is it specifically those three markets? Are you looking to expand it to other markets right now? We definitely are, but we really have our hands full in California. So right now, we're producing in California almost 100 liters of high-grade distillate every week. And we're right now doubling our capacity and everything we produce is sold before it ever leaves the line. That's incredible. So California is just growing at a phenomenal pace. And if you compare that, if you think about that, last year, the entire import of distillate into the country of Germany was only 100 liters. Wow. It's seismic. That's incredible. That's impressive. And can you please elaborate on the investment into Lesotho cannabis and what this does for the company now as of July the 12th? Yeah, what's interesting is our investment in Lesotho or our intention to buy the Lesotho operation really stems from growth, what I call starting next year and beyond. Lesotho, out of all the places we've looked in the world, be it Columbia, even be it Cambodia, Lesotho is by far the best positioned place on the planet right now to grow cannabis cost-effectively in a perfect climate with a great regulatory environment. And we're not alone. Canopy just bought Canada at ease there. Supreme invested in Medigrow for 10%. They invested at $100 million valuation on a business plan. And Aphria is there as well and Bedrocan as well. So we're a great company. The difference between our strategy internationally or outside of North America versus others is that in Lesotho, we're going to grow cannabis. We're going to grow it in low cost greenhouses and then outdoors. But we're growing it for the C's, not for the T. And what that means is that we're going to grow cannabis that yields high CBD twice as much as any other industrial hemp or pure hemp strain. And then we have such good low costs that we'll be able to grow CBD and sell CBD oil that is very high quality at almost half the cost at which it now is sold on the market worldwide. And the CBD market worldwide is blowing up. Absolutely. I actually am in the CBD business ourselves. And I have a plant in Phoenix, Arizona, where we're producing about 50 liters a day of nano-soluble CBD. So nano-water soluble CBD. And it's 98% bioavailability, which means you take it and it goes right into your bloodstream. So I believe it's one of the best products out there. It's lab tested. And we created the product here in Vancouver. But as you know, it's not legal and licensed to sell and distribute CBD in Canada. So we had to focus on doing it in America. So our goal has been to look for companies like yourselves that would be interested in potentially working with us because we have a lot of CBD available. Well, I can tell you that we will be able to deliver into America 98% tea-free CBD isolate for your nano-emulsification process at around 3,500 per kg. And that's FFC 22,000 and Global Gap certified. A lot of people aren't focusing on the Global Gap aspect because you're only going to be able to deal with General Mills, Himes, Conagra, Kellogg, if you're Global Gap. That's impressive. I really love what you guys are doing. Now, can you tell us about your lease buy-down of the California facilities and what this does for the company? Well, first, what it shows is that just so your readers are aware, Falcon is one of the, I'd say, top three manufacturing and distribution companies in California. I believe their revenues right now monthly are in excess of $10 million, and they've entered into a deal to be acquired by Harvest. And Harvest, as you know, is opening a lot of dispensaries in California. Yes. So what Falcon did for us just shows how much Falcon and that whole group supports us, where they effectively took off, and we were able to buy down our lease cost from $3 a square foot to $1.25 a square foot. And then effectively, let's say there was a million of savings there, they gave us half a million of the savings, and they took the other half million in our stock, which just shows how confident they are in the company and the ability of the company's stock to perform. Wow. That's impressive. I love what I'm hearing right now. Now, one of the things you mentioned about the stock performing, let's get into the stock a little bit because we have a lot of investors and we love to buy low, sell high. The stock has been beating down a little bit. Obviously, the entire sector is at a 52-week low in Canada, and a 52-week low in the United States. Is this the time for investors to start looking into Halo Labs, considering the price is so low? From my perspective, we're about to announce earnings. We gave, as you know, our first quarter was record first quarter. We were the third highest-growing cannabis company, US publicly traded cannabis company with 300% year-over-year growth, and ours was all organic. And the two guys who were ahead of us were buying other companies. Besides this acquisition and the pseudo, we've never made an acquisition. All our growths come organically. And there's nothing in our future right now that doesn't indicate to us that that growth trajectory will continue. So we're very positive about future growth. We think we'll be at about 48 to 45 million US this year in annualized revenue. And with the stock trading where it's at, that's less than two times revenue. So it's a very undervalued stock relative to its peers, where many of our extraction peers are trading at seven to eight times revenue, or more. Some of them are trading at 40 times revenue. So to trade at two times revenue, I think that puts you at almost in the league of your own. And no one other company still canna that I've spoken to. And I think they're trading at one time revenue. So other than them, I haven't heard anybody else trading lower than you guys. So from that perspective, I believe this is extremely undervalued, under-appreciated, and under-exposed. Now, a month ago, or a few months ago, you announced that Halo Labs is building a cannabis concentrates empire. We'd love to know more about that. Well, though, when you look at it, in terms of cannabis oils and concentrates in the United States, I only know of maybe two or three other companies, including the MSOs, that produce as much as we do. I mean, we've really stuck to our knitting. Cannabis oils and concentrates, by our estimation, currently are 65% of the market. Flower and pre-rolls in the United States are only 35%. So you're looking at cannabis oils and concentrates is the hottest center in the hottest market. And so what we plan to do is go into other states, but we have really good brands. We have really unique products like the Dab Tab, which is the first docible cannabis product out there. And it's beautiful because you can take the tab, actually, put it in your pocket. No hassle, no mess. It's a dose. And it can hold almost any type of oil or concentrate. So with these sorts of products, live resin sauce, and other pens that we do very cost-aportably, we're getting approached by many other multi-state operators who are asking us to come into their facilities, be their partners, launch our brands and our products in the states they serve. Wow. So leveraging other people, even in Canada, very large LPs we're in discussions with, we begin to expand our footprint and we do it cost-effectively, leveraging their licenses and their space. I love it. I absolutely love what you guys are doing. I think it's brilliant. I think it's the smart way to do it. There's a company here called Zenibus. I don't know if you're familiar with Zenibus. Oh yeah, I've heard the name for sure. They're doing something pretty brilliant and it's unique. What they've been doing in order to raise money and not dilute their stock because they feel their stock is undervalued and it's been getting beaten up like a lot of companies. It's gone from $6.85 to $1.50. What they've done because they didn't want to create any more dilution and do toxic funding, they've been selling product in advance. They sold $30 million of product to Tilray and they just sold another $10 million of product to another company. So they've already sold $40 million of product. So this is what they're doing to raise capital and they're doing it without diluting their stock. So it's interesting to hear different companies' dynamics of how they're growing their brand, how they're working with other LPs. I love it when I hear a company saying they're working with other LPs because that, in my mind, that's dollar signs. Correct, right? And part of our idea of when we enter Canada as oils and concentrates are coming on, I still think it's very early in Canada. I hope Canada's been because of regulator and so they're gonna slowly let different oils and concentrates come on the market, very cautiously with edibles. And by the way, we do the whole gamut. I mean, we do edibles. You were talking about nano emulsification, water solubility. We have that in our drinks. So we do the whole gamut and what I see is a great opportunity also to work with an LP in Canada. But what we would do in Canada, again, is bring novel products that we have in the States we operate in as opposed to going mainstream. So we get higher margin and we have a sustainable competitive advantage. I think that's very smart. Now, you touched on this a little bit, your price of your CBDs. Now, the price of CBDs have dropped dramatically. Do you think that that will affect the bottom line of a business like yours? And that is why we picked Lesudu because Lesudu is the only place where that, what I call that iron wall is not in place. So we can actually grow the marijuana plant to extract the CBD and we can strip the THC and we get a higher yield of CBD versus any other hemp plant. So our economics are two to one over our competitors in other countries. And canopies seized upon this too and that's why they purchased the rest of their operation, their candidates. So they get it. And so that's what makes Lesudu so special and it seems a little far field for us but we figured if we're going to start also competing in the Cs, CBN, CBG and CBD, we need to have a place. It's always our motto. You need to either have proprietary technology, proprietary products, or you need to be able to have a cost advantage on a long-term basis in order to succeed over the short to medium term. I agree 100%. I think that you guys definitely have a strong plan. And I love the fact that you are a American company that wants to do business in Canada. I think that that's interesting because there's companies like Canopy Growth that are essentially stating that they don't even want to do business in Canada. So it's refreshing to hear that Canada is not just like a wasteland because I don't believe it is. I believe we are like the OG, the original grandfathers of cannabis and CBD. So there's definitely a place in this sector and this industry for Canada. But when you consider the sheer size and growth of the United States, it makes sense to focus on America when you got 10 times the population. So I understand that everyone has their own theories around how they want to go about attacking the marketplace. So I really like what you guys are doing. Now the next question I have with you is, Halo Labs team has grown quite a bit since the beginning. Can you tell us about some of the key additions to the team and how they strengthen Halo Labs? Well, you know, so the three co-founders were myself, Andreas Met and Phillip Bandenberg. Myself, I've been in the cannabis space since 2013. I was a seed investor in Golden Leaf Holdings, which was the first US plant touching cannabis company to go public on the CSC. Wow. I also was the, I was also the first check-in to Emerald Healthcare Therapeutics, which you probably know really well. Yeah. I owned and operated one of the largest V2C set of websites called Everyone Does It, that I vended in and took 30% of Namaste when that stock was 10 cents. Oh wow. So I myself sort of am able to find value. Andreas was at Walmart and then he was head of sales at Golden Leaf. And Phillip was a partner at Goldman Sachs and then he also was the CFO at Golden Leaf and then the CFO at Namaste before joining us. But we've been partners in these ventures and we've been in the extraction space since 2013. You know, we have a lot of experience. We've physically packed columns ourselves. We've added to our team recently, David Orr, after 10 years at Pepsi and 15 years at Johnson & Johnson. And David was a specialist at Pepsi in the liquor store. So he managed massive field organizations that went into liquor stores to sell Pepsi's products. And he's done a great job at increasing our distribution and increasing our margins and our assortments in the stores. And so in Oregon and Nevada, quarter over quarter we're experiencing growth. Our revenue is growing, it's clipping there, not as fast as California, but it's doing quite well. And then lastly, we just added Katie Field, who as our Chief Strategy Officer who had a similar title at Merrimed. But Katie's claim to fame was she was the person who helped cost the farms get the first ever cannabis license in Florida, which is now owned by Curely. Wow, I love it. You got a great team that you're putting together. Obviously you guys have a lot of experience. You guys have done everything from upper management, like you said, to working directly with the product. So I think that you guys are definitely on the right track. Now, who are some of your main competitors in the field that you're in right now? And how do you guys stand out in the pack? Okay, so I think our largest competitor has always been and we've all always been due to Curely partners. Curely partners was recently sold to Curely for about a billion dollars. Wow. And I think our valuation is $96 million. So the way I always look at it is that we're about a year behind, but they're the most exact comp. The only difference is they market everything under one brand, which is Select. And we market under our own multiple brands. And we also do some white labeling and we also do some bulk product supply. But where we can, we always migrate towards our own brands. But I'd say Curely partners is exactly our comp. We're just about a year behind and about 10 times the valuation behind. Which is exciting for shareholders because we love to buy low and sell high and we love to get into companies early. So I'm loving what I'm hearing right now and I'm sure that our community that's listening and is gonna be watching to this video is going to just be loving what they're hearing. Now, going into that question, if there's one thing that you want shareholders to know about Halo Labs, what would it be? The one thing that I want people to know is that we are shareholders. Even though we're management, myself and Phillip, we take all our compensation and shares. Wherever we can, we're always looking to invest. We as management, we've invested in every round that we've done, including the last round that Kanakor just did for us a couple of months back for 18 million in converts. And we're always looking to maximize shareholder value. Fantastic. And with the way things are going, it looks as though Halo Labs is on pace and primed for a huge 2019. Can you tell us what's going to be coming up for the next few months before the end of this year? Well, I think the most critical thing right now is to increase distribution in California. We're in about 50 out of 500 dispensaries. We're trying to sign deals and acquire distribution in Northern California. We just launched with ease and the DAB tabs are ripping at ease. And it's really appealing to their demographic, which is 21 to 34 year old males with disposable income. They're planning to give us our own menu once we start partnering with other concentrate companies and start filling their concentrates. We work really closely with Kaleva. We're trying to grow that relationship. And we're starting to work with some of the other big guys in California. Obviously we'll work with Falcon, which is one of the top three or four. And we just keep expanding these relationships then our growth just geometrically progresses. I think that that's great. Now lastly, what is the best way for shareholders to get in touch with the company? You can get in touch with us at our investor relations at halocanada.com. We trade on the NIO, ourselves in Columbia Care, I think now Jushi, all trade on the NIO. It's a big board exchange like the TSC, our symbol there is halo. And we trade on the OTCQX under AGEEF. And the one thing that's good about halo too is we've just entered all the big indexes. So we're on the OTCQX cannabis index just happened a week or two ago. And we're on the horizons US index as well. Wow. So what happens is as the stock price goes up, they buy more and it sort of acts as a nice catalyst. I love it. You know what? I really like what I hear. I wanna thank you for being here on Rich TV Live today. This is the CEO, Kiran Sado of Halo Labs. Guys, go and take a look at Halo Labs, put it on your watch list, put it on your radar. I believe it's a company that is underappreciated, undervalued and under exposed. And we're gonna be watching them very closely. Thank you for joining us today. Thanks for having me. Have a nice day.