TORONTO--(BUSINESS WIRE)--July 10, 2020--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.
Acquisition Highlights
• Upon closing of the Transaction, Halo will have secured
o 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
o 200 hectares (494 acres) of conditionally approved outdoor canopy for the mass
cultivation of medicinal grade cannabis
o 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
o 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
o Local genetic strain bank undergoing continuous evolutionary improvement o Completed first harvest of 1,000 cannabis plants and 187 kg of raw product
yielded
o Full production across the 5-hectares expected in early 2021
• Phase 2 Expansion Plan – Long-Term development of 200-hectare outdoor cultivation zone
o Land rights secured
o Conditional approval granted by Lesotho authorities for outdoor growing • Solidified path to Bophelo project funding
o 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
o European Good Agricultural and Collecting Practice (“GACP”) consultant engaged to assist with certification process
o 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.