TORONTO--(BUSINESS WIRE)--Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to provide an operational update given recent developments at Bophelo Biosciences Ltd. (“Bophelo”) in Lesotho, Africa.
Halo’s CEO and Co-Founder, Kiran Sidhu, commented: “I am happy to provide our investors with further insight and updates surrounding our international operations. As we continue to lay the groundwork for expansion, we foresee 2020 as being a promising year for international development.”
Halo and Bophelo are in the process of negotiating mutually agreeable definitive agreements and the parties expect to sign such definitive agreements within the next thirty days.
In July 2019, Bophelo built a nursery in Lesotho, planted seeds and expects to have sufficient mother plants to begin implementing the entirety of the grow operations. Civil work and site preparation activities have begun on the initial 5-hectare site with expectations to be completed prior to the end of October. Bophelo is also implementing five 1-hectare greenhouses in a 3-phase plan with the initial greenhouse expected to be operational in the fourth quarter of 2019 and the site in full production by the second quarter of 2020. Bophelo is working with a local South African greenhouse supplier with delivery expected in the next 60 to 75 days. The first summer growing cycle is expected to begin in the fourth quarter of 2019 with the first harvest to occur in early second quarter of 2020. In conjunction with building out the grow operations, Halo has identified a European GACP consultant to expedite the required European certifications and will begin site inspections by November 2019. Bophelo is currently in negotiations with both Israeli and European licensed cannabis companies for the importation of medicinal cannabis.
Bophelo has secured third party funding of over $1MM USD being used in part to erect and plant an initial hectare that is projected to be fully implemented in the fourth quarter of 2019. Additionally, Bophelo is in discussions with local South African banks to secure a term loan to fund all grow operations as well as an extraction facility build out. This extraction facility is planned to be established in a warehouse in close proximity to our cultivation site and is expected to be built out and operational in 2020.
Longer Term Strategy
Bophelo has been conditionally approved for 200-hectares of outdoor cannabis grow operations and expects to receive formal approval in the first quarter of 2020.
Bophelo intends to grow cannabis strains that are both high in CBD and THC content. Traditionally, cannabis plants have yielded more CBD than hemp plants which provides Halo with a competitive cost and efficiency advantage over other jurisdictions. Most jurisdictions allow companies to grow cannabis primarily for THC distillate and hemp primarily for CBD isolate and other usable byproducts. When the extraction facility is established in Lesotho, Bophelo will be able to produce THC distillate and CBD isolate at the same location, providing cost-efficient production capabilities.
Completion of the transaction will be subject to the satisfaction or waiver of any conditions precedent in the definitive agreements (including the receipt of any requisite regulatory, governmental and stock exchange approvals).
Halo is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Halo is a global leader in cannabis oil and concentrates, having produced over 4 million grams of oils and concentrates since inception. The Company has expertise across all major cannabis manufacturing processes, leveraging a variety of proprietary processes and products. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently operating in California and Oregon, as well as in Nevada with our partner Just Quality, LLC, and in Lesotho with the Bophelo strategic partnership. With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
ABOUT BOPHELO BIOSCIENCE
Bophelo Bioscience is based in the Kingdom of Lesotho, Southern Africa and is the holder of one of a limited number of licenses issued in Lesotho for the production of medicinal cannabis products. Situated in proximity 70 kilometers to the capital city of Maseru, the Company’s operating site is an ideal location with ample labor, free water, flat land area, and low crime rates. The favorable high altitude, low humidity climate provides clean and organic growing conditions within the pristine mountainous region. With the motto "Sechaba se tlisa lerou" (community brings wealth), Bophelo highlights the value of community and empowerment of the Basotho people with a focus on the development of women and youth.
Lesotho is the first African country to legalize the cultivation and manufacturing of medicinal cannabis, becoming one of the most sought-after locations for cannabis operations in the world. The country has issued a limited number of licenses since legalization in 2016 and has been exporting cannabis since early 2018.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein may include, but is not limited to, statements regarding the acquisition of Bophelo Bioscience and its international operations in Africa, and negotiations with European and Israeli Companies for the importation of medicinal cannabis.
By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.