Growing
Current Status and Growth Plans
Presently, Halo Pharms is in the process of establishing its technology-driven cultivation facility in Kasilof, Alaska, with plans for the opening of the first dispensary in Anchorage. Our immediate focus is on cultivating quality cannabis genetics and crafting premium cannabis products.
In the near term, Halo Pharms aims to secure a strong foothold in the Alaskan market, targeting authorized recreational/medical cannabis retailers. Our growth plans include the gradual expansion into extraction and retail services over the following two years.
As we move forward, Halo Pharms will consistently monitor the regulatory environment, adapt its operations to market shifts, and invest in innovative technologies to maintain a competitive edge. The company's dedication to a vertically integrated and in-house approach ensures agility and responsiveness to emerging opportunities, setting the stage for a successful and sustainable future.
Investment Opportunity
Halo Pharms invites potential investors to participate in its startup phase, seeking a total investment of $1,900,000. The company projects gross revenues and net income of $7,500,000 in the first year, followed by revenue projections of $11,250,000 in the second year and $15,000,000 in the third year, with corresponding net incomes.
Investors are presented with two investment options: equity or interest. If you opt for equity, you become a shareholder in Halo Pharms and receive a share of the profits proportionate to your investment (refer to the attached investment structure). Alternatively, choosing the interest option ensures a fixed return on your investment over a defined period.
| Investment | Percentage of Profits | Return on First Year Revenue $2000/lb. | Return on First Year Revenue $3,000/lb. | Return on First Year Revenue $4,000/lb. |
|---|---|---|---|---|
| $1,900,000 | 30% | $2,250,000 | $3,375,000 | $4,500,000 |
| $500,000 | 10% | $750,000 | $1,125,000 | $1,500,000 |
| $250,000 | 4.5% | $337,500 | $506,250 | $675,000 |
| $100,000 | 3% | $225,000 | $337,500 | $450,000 |
| $50,000 | 1.5% | $112,500 | $168,750 | $225,000 |
| $25,000 | 1% | $75,000 | $112,500 | $150,000 |
| $10,000 | .5% | $37,500 | $56,250 | $75,000 |
These financial projections exclude taxes and labor costs. Halo Pharms anticipates cost reductions after the first year through technology-driven efficiencies, operational experience, and industry research and development.
The allocated funds will be utilized for critical startup activities during the first stage of our project. This includes registering the company as a S-Corp in Alaska, securing a Standard Cannabis Cultivation License in the state, hiring essential professionals such as an accountant and attorney, acquiring land for the cultivation facility, constructing the facility, equipment, seeds & nutrients, security, and hiring staff.
As a newly established cannabis company with a vision for long-term vertical integration, Halo Pharms initial focus is on cannabis cultivation. The company is in the process of obtaining licenses and registrations for cultivation, with plans for extraction and retail operations in subsequent stages. Our first stage involves establishing a state-of-the-art cultivation facility in Kasilof, Alaska, setting the foundation for future expansion into extraction/manufacturing and retail operations. The subsequent stages will include obtaining licenses for extraction and retail, with the first dispensary slated for Anchorage, Alaska. Your investment in this crucial first stage will propel Halo Pharms towards its goal of becoming a leading, vertically integrated player in the cannabis industry.
Market Analysis
The Alaskan cannabis market currently sees a prevalence of small, locally owned dispensaries and cultivators, showcasing a profound understanding of local dynamics and regulations. Successful enterprises, particularly those demonstrating resilience and growth, are primarily those adopting a vertically integrated model—engaging in cultivation, manufacturing of cannabis products, and retail.
Alaska's cannabis market has demonstrated remarkable resilience despite geographical and taxation obstacles. Over the next three years, cannabis sales in Alaska are anticipated to experience a steady increase. Despite being the least dense and 48th least populated state in the U.S., Alaska has witnessed consistent growth in cannabis sales. According to Marijuana Business Daily, the state's market share in legal cannabis is projected to surge from 0.05 percent in 2016 to 0.57 percent in 2025.
The Alaska Economic Job Projection Trends Report foresees substantial growth in the agriculture sector by 2030, driven primarily by marijuana cultivation. Greenhouse-based marijuana cultivation is expected to play a significant role, with over 85% of new jobs anticipated to originate from this sector by 2030 (source: Point Seven Group).
For cultivators, Alaska's cannabis market holds considerable growth potential. The market values high THC percentage flower, fetching prices between $3,000 and $4,000 per pound, creating a lucrative environment. However, cultivators grapple with challenges, including the hefty $800 excise tax per pound sold. After deducting taxes, an average cultivator is left with $1,200 per pound to cover operational expenses such as labor, utilities, and rent.
To illustrate, a 60-pound cannabis flower harvest selling at $3,000 per pound yields $180,000 for the cultivator. Deducting $48,000 for taxes and factoring in labor costs (five laborers at $15/hr. and 40 hrs./week) plus utilities, many cultivators in Alaska often find themselves struggling financially. This sheds light on the struggles experienced by many cultivators in Alaska.
What sets Halo Pharms apart is our commitment to leveraging technology to reduce operational costs. Unlike many Alaskan cannabis cultivators, we recognize the transformative power of technology to streamline processes and enhance efficiency. By adopting cutting-edge technologies and cost-effective techniques, we are poised to redefine industry norms and achieve a competitive edge.
Halo Pharms is strategically positioned to thrive in this competitive landscape. Our focus on vertical integration—cultivation, manufacturing, and retail—aligns with the successful model seen in flourishing Alaskan cannabis businesses. Leveraging this approach, we aim to not only meet but exceed market expectations.
In a market where technological innovation is underutilized by cultivators, Halo Pharm's emphasis on technology-driven efficiencies stands as a distinctive advantage. Our forward-thinking approach positions us to maximize profit margins, reduce operational costs, and establish a robust presence in Alaska's evolving cannabis landscape.
