Welcome to the third installment of “Bulls and Bud,†where we take a look at some of the most promising stocks and brands in the legal cannabis industry.
Halo Labs
While the CSE has proven to be an excellent place for U.S. cannabis companies to go public, it has also been a bit of a tease for U.S. investors that want to invest in these stocks, but can’t because their online brokers won’t allow them to trade stocks on the CSE.
Some investors have had some success using the Interactive Brokers platform, but aside from that, physical brokers have become necessary for many U.S. investors to buy stocks on the CSE. And with that, comes a fair amount of hassle and much higher fees.
Some U.S. cannabis companies have chosen to list on the NEO exchange, too. While this isn't a particularly well-known exchange, it’s actually a pretty legitimate one, with more than $1 billion in daily trading volume.
Truth is, I actually like the NEO exchange, as its focus in on providing a level playing field for investors and seeking to limit predatory trading practices. An honorable endeavor, to be sure.
The downside, however, is that much like the CSE, your average retail investor from the U.S. can’t find an online broker to handle trades on the NEO.
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This was very frustrating last year as Halo Labs went public on the NEO exchange under the symbol “HALO.â€
If you’re unfamiliar, Halo Labs is an Oregon-based manufacturer of cannabis oils and concentrates where it boasts about 20 percent of the Oregon concentrates wholesale market, and has done more than $25 million in revenue.
The company also moved into the California market last year, where it now has a $2.2 million monthly extraction contract with Falcon International. It also has exposure in Nevada where it has a licensed processing facility with a per day estimated production capacity of 15,000 grams.
Halo Labs is a solid player, moving 100,000 grams of oils and concentrates per month, serving more than 50,000 customers. So needless to say, many investors have wanted to buy shares of Halo, but couldn’t because they had no way to buy them.
That changed last week, after the company announced it had been approved to start trading on the OTC, under the symbol “AGEEF.†This is actually the first company from the NEO to cross-trade on the OTCQB Venture Market.
Halo Labs isn't a popular name in the world of pot stocks, and I would argue this is mostly due to the fact that most investors have had no way to know about it or invest in it. But with this new listing, that will change, and Halo will benefit immensely, as thousands of U.S. investors will now be able to invest in the company. (Full disclosure: I currently own shares of Halo Labs).
Eco-Friendly Packaging For Your Weed
The late, great comedian Bill Hicks once said...
“Why is marijuana against the law? It grows naturally upon our planet. Doesn’t the idea of making nature against the law seem to you a bit ... unnatural?â€
I always loved that line. There’s so much honesty and truth to it.
Yet there’s another truth about the natural state of cannabis that we must be honest about, too, despite the fact that it’s a bit inconvenient, and does sting.
The packaging we use in an effort to comply with regulations isn't natural at all. Mostly plastic, this stuff is incredibly bad for the environment, and quite frankly, incredibly wasteful.
Plastic cases for single pre-rolls, large plastic containers for flower, smell-proof, thick plastic bags that we use to take our medicine home, then throw away in the garbage so it can sit in a landfill for the next 100 years.
For an industry that oftentimes claims to be in harmony with nature, it’s also at odds with nature. To be fair, much of this packaging exists in an effort to comply with very strict regulations. Still, as the industry continues to evolve, there will be a need for a form of packaging that won’t be so environmentally-damaging.
One company that’s identified this very serious problem, and has created a solution, is Sana Packaging.
Sana Packaging, is, as far as I know, the only cannabis packaging company providing sustainable packaging solutions for the industry. The company uses 100 percent plant-based hemp packaging, which is far more sustainable than that which is most widely used in the market today. And of course, what the company provides is compliant with regulatory demands.
For instance, the child-resistant box show below is not only made of plant-based material, but comes in a nesting design that allows for efficient shipping and storage. The lid can even be used as a rolling tray.
Sana also makes a child-resistant tube that can be used for pre-rolls and vape cartridges.
One of the great things about the cannabis industry is that it’s still young enough to be operated in a sustainable manner, before bad habits become embedded into the fabric of daily operations.
Companies that have very specific packaging requirements can seek out and utilize more sustainable solutions, such as what Sana Packaging offers. And as consumers, we can also back the companies that choose to operate in a more environmentally responsible way.
Understand, this isn’t just some random treehugger rant. This is simply acknowledging a better way to do things. And it’s an acknowledgement that the cannabis industry, which is so heavily vilified, can be seen as more of an asset to society, rather than a liability. As long we maintain a very high standard of social responsibility.
For more on Sana Packaging, check out their promotional video here.
Jeff Siegel is the co-founder and managing editor of Green Chip Stocks, a private investment community focused on socially-responsible investing. He is an expert in renewable energy and cannabis investing, has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks.
Photo by Javier Hasse.
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