Alaska and Maryland have the highest wholesale cannabis flower prices in the United States.
For cultivators, Alaska's cannabis market holds considerable growth potential. The market values high THC percentage flower, fetching prices between $2,000 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.
Investment Requirements
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. 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's 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.
