Halo Pharms, LLC – Stock Information

Welcome to the Halo Pharms, LLC Stock Information page. This section provides detailed insights into our equity structure, shareholder rights, and long-term value proposition. We are committed to transparency and fostering strong relationships with our investors as we grow within the cannabis industry.

Equity Structure

Class A Shares:
• Voting Rights: 10 votes per share.
• Holder Profile: Held primarily by the founders and key strategic partners.
• Special Rights: Founders and board-appointed members have veto power on critical strategic decisions.
Class B Shares:
• Voting Rights: 1 vote per share.
• Holder Profile: Available to general investors.
• Investor Focus: Designed for investors seeking equity participation with standard voting rights.
Authorized Shares:
• Total Shares Authorized: 10,000,000 shares.
• Par Value per Share: $0.95.
Ownership Structure:
• Founder Ownership: Van C. Adams, as the founder, currently holds 100% of the initial equity. As the company grows, ownership stakes will diversify, offering opportunities for new investors to participate in the company’s success.

Shareholder Rights

Voting Rights:
• Founder Voting Rights: The founder retains significant control over strategic decisions to ensure alignment with the company’s long-term vision.
• Supermajority Voting: Certain critical decisions require a supermajority vote, including approval from Class A shareholders.
Preemptive Rights:
• Shareholder Participation: Existing shareholders have the right to purchase new shares before they are offered to outside investors, allowing them to maintain their ownership percentage.
Drag-Along and Tag-Along Rights:
• Drag-Along Rights: Majority Class A shareholders can compel other shareholders to sell their shares under the same terms, ensuring a unified exit strategy.
• Tag-Along Rights: Minority shareholders can sell their shares under the same terms as majority shareholders, protecting their investment interests.

Financial Health & Projections

Revenue Projections:
• Year 1 (2024): $36,600,000
• Year 2 (2025): $50,000,000 (initial expansion)
• Year 3 (2026): $70,000,000 (further expansion)
• Year 4 (2027): $100,000,000 (approaching full capacity)
• Year 5 (2028): $120,000,000 (full capacity)
Expense Projections:
• Year 1 (2024): $524,449.88 (initial operating expenses)
• Year 2 (2025): $786,674.82 (expansion)
• Year 3 (2026): $866,342.30
• Year 4 (2027): $953,976.53
• Year 5 (2028): $1,049,374.18
Capital Expenditures:
• Year 1 (2024): $1,474,500 (initial capital expenditures)
• Year 2 (2025): $750,000 (expansion to 4 grow rooms)
• Year 3 (2026): $750,000 (expansion to 6 grow rooms and full automation)
Projected Cash Flow:
• Net Cash Provided by Operating Activities: $22,960,039.90
• Net Cash Used in Investing Activities: $1,474,500
• Net Cash Provided by Financing Activities: $1,900,000
• Ending Cash Balance (Year 1): $23,485,539.90

Strategic Growth Plan

Phased Expansion:
• Phase 1: Establish initial operations with two grow rooms, focused on optimizing efficiency and ironing out operational challenges.
• Phase 2: Expand to four grow rooms, scaling production capacity to meet increasing demand.
• Phase 3: Achieve full capacity with six grow rooms and implement advanced automation technologies, maximizing output while minimizing costs.
Reinvestment Strategy:
• Halo Pharms, LLC is committed to reinvesting profits to fuel further growth. This strategy ensures that expansion is both sustainable and strategically aligned with market demand.

Market Outlook

Cannabis Market Growth:
• The cannabis market in Alaska is projected to grow at an annual rate of approximately 8.55%, with increasing demand for high-quality, diversified cannabis products.
Product Diversification:
• Halo Pharms plans to expand into the manufacturing and extraction of various cannabis products, including edibles, beverages, oils, and tinctures, tapping into the growing trend of cannabis consumption across different demographics.
Competitive Positioning:
• Leveraging automation and alternative energy sources, Halo Pharms is well-positioned to offer competitively priced products while maintaining high-quality standards.

Investment Opportunities

Initial Funding:
• Total Initial Funding Needed: $1,900,000
• Use of Funds: The initial investment will fund the setup of two grow rooms, essential equipment, and partial automation.
Future Rounds:
• Subsequent Rounds (Years 2-5): $1,500,000 to support expansion efforts, including additional grow rooms and full automation.
Long-Term Value Proposition:
• By investing in Halo Pharms, you are participating in a company with a strategic plan for growth, a strong commitment to sustainability, and a clear path to profitability. Our phased growth plan ensures that we manage risk while scaling, providing a solid return on investment.

Contact Investor Relations
For more detailed information about investing in Halo Pharms, LLC or to request a copy of our latest financial reports, please contact our Investor Relations team.
Investor Relations Contact:
• Email: investors@halopharms.com
• Phone: +1 833.618.1851
• Address: 53270 St. Elias Avenue, Kasilof, Alaska 99610

Halo Pharms, LLC is committed to building a transparent and profitable business. We look forward to partnering with forward-thinking investors who share our vision for growth in the cannabis industry.