TORONTO--(BUSINESS WIRE)--Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that it has obtained regulatory approval from the Central Lesotho Bank (“CBL”) to proceed with its proposed acquisition (the “Transaction”) of Bophelo Bioscience & Wellness (Pty) Ltd (“Bophelo”). With approval from CBL in hand, Halo is moving towards closing the Transaction and this is expected to be completed prior to the end of July 2020.
Located in Mafeteng in the Kingdom of Lesotho in southern Africa, Bophelo has the country’s largest licensed land area for cultivation of medicinal grade cannabis products. Bophelo currently leases a 5-hectare fully licensed greenhouse canopy and has conditional approval to expand to a total of 200 hectares of licensed outdoor canopy. Once fully implemented, the 200-hectare Bophelo site is expected to be one of the largest cannabis cultivations in the world.
Upon closing of the Transaction, Halo will have secured
- A fully licensed 5-hectare (12 acres) cultivation site, with preparation underway for the construction of five 1-hectare state of the art forced air greenhouses
- 200 hectares (494 acres) of conditionally approved outdoor canopy for the mass cultivation of medicinal grade cannabis
- Access to ample water, power and labor in a clean, dry and safe growing environment with an average of 200 days of sunlight a year
- A fully licensed export business, with potential access to European, Israeli and Australian cannabis markets
Phase 1 Growth Plan – Completion of licensed 5-hectare greenhouse cultivation site
- Local genetic strain bank undergoing continuous evolutionary improvement
- Completed first harvest of 1,000 cannabis plants and 187 kg of raw product yielded
- Full production across the 5-hectares expected in early 2021
Phase 2 Expansion Plan – Long-Term development of 200-hectare outdoor cultivation zone
- Land rights secured
- Conditional approval granted by Lesotho authorities for outdoor growing
Solidified path to Bophelo project funding
- Bophelo is in discussions with several commercial banks in South Africa to fund the Phase 1 Growth Plan
Bophelo is in negotiations with European, Australian and Israeli licensed cannabis companies for the import of medicinal cannabis
- European Good Agricultural and Collecting Practice (“GACP”) consultant engaged to assist with certification process
- Export sales under license are expected to commence from Bophelo in Q1 2021
Commenting on the CBL approval, Halo CEO and Co-Founder Kiran Sidhu stated, “Our vision is to make Halo one of the world’s largest cultivators and exporters of medicinal cannabis. With the approval of the CBL in hand, Halo expects to complete this acquisition by the end of July 2020 which will set us on this path. Once we are able to fully assume leadership and develop Bophelo’s 200-hectares, our ambition is to transform the Mafeteng region of Lesotho into a global powerhouse of cannabis cultivation.”
Louisa Mojela, Founder and Chairman of Bophelo commented further, “I am pleased and excited that finally the acquisition of Bophelo by Halo can be implemented following the approval by the CBL. Furthermore, we are excited to join the Halo family and in doing so apply their unique expertise and track record in the cannabis industry. This acquisition will bring much needed jobs and contribute to the economic development of Lesotho as well as enhance community development of women and children. These positive outcomes are now closer to being achieved as we have a clear path to closing the Transaction and operating at full capacity.”
Completion of the Transaction is subject to the satisfaction or waiver of certain conditions precedent (including the receipt of any requisite regulatory and third-party approvals) and there can be no assurance that the Company will complete the Transaction.
Halo is a leading cannabis cultivation, manufacturing, and distribution company that grows and extracts and processes quality cannabis flower, oils, and concentrates and has sold over 5 million grams of oils and concentrates since inception. Additionally, Halo has continued to evolve its business through delivering value with its products and now via verticalization in key markets in the United States and Africa with planned expansion into European and Canadian markets. With a consumer-centric focus, Halo markets innovative, branded, and private label products across multiple product categories.
Recently, the Company entered into binding agreements to acquire a dispensary in Los Angeles, 3 KushBar branded dispensaries, 5 development permits in Alberta Canada, and Canmart Limited which holds wholesale distribution and special licenses allowing the import and distribution of cannabis based products for medicinal use (CBPM’s) in the United Kingdom. Halo is led by a strong, diverse management team with deep industry knowledge and blue-chip experience. The Company is currently operating in the United States in California, Oregon, and Nevada while having an international presence in Lesotho within a planned 200-hectare cultivation zone via Bophelo as well as planned importation and distribution in the United Kingdom via Canmart.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
Bophelo Bioscience is based in the Kingdom of Lesotho, Southern Africa, in the Mafeteng Region. Bophelo is the holder of one of a limited number of licenses issued in Lesotho for the production of medicinal cannabis products. As the largest licensed landholder in Lesotho, Bophelo’s 9-year license allows it to cultivate, manufacture, import and export cannabis products.
Situated approximately 70 kilometres from the capital city of Maseru, Bophelo’s operating site is in an ideal location with ample labor, abundant free water, flat land, and low electricity costs. The favorable high altitude and low humidity climate provide clean, organic growing conditions in this pristine mountainous region. With over 200 days of annual sunshine, Bophelo can support as many as 3 full growing seasons a year.
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 Transaction including the terms and closing thereof, the development and licensing of Bophelo’s cultivation site and production capacity, the appointment of Ms. Mojela as Chairperson of the Company and the potential export of cannabis produced by Bophelo.
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.
Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: unexpected costs or delays in the completion of the Company's ongoing acquisitions; negative results experienced by the Company or potential acquisition targets as a result of general economic conditions or the ongoing COVID-19 pandemic; delays in the ability of the Company or Bophelo to obtain certain regulatory approvals; unforeseen delays or costs in the completion of the Company's construction projects; adverse changes to demand for cannabis products; ongoing projects by competitors; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; risks related to licensing, including the ability to obtain the requisite licenses or renew existing licenses for the Company's proposed operations; dependence upon third party service providers, skilled labor and other key inputs; risks inherent in the agricultural and retail business; intellectual property risks; risks related to litigation; dependence upon senior management; and the other risks disclosed in the Company's annual information form for the year ended December 31, 2019. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
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.