TORONTO — December 12, 2018
Halo Labs Inc. (“Halo” or the “Company”) (NEO:HALO, OTC:AGEEF) is pleased to announce it has signed a letter of intent to enter into a partnership with Bophelo Bioscience and Wellness Pty Ltd (“Bophelo Bioscience”), a Lesotho based cannabis company.
Halo will provide management services and expertise to build, design and operate cGAP cultivation and cGMP extraction facilities in exchange for a 20% equity position in Bophelo Bioscience, as well as a royalty on future extracted products. The Company has also entered into an off-take agreement whereby Halo will acquire all of Bophelo Bioscience’s production at prevailing market rates at time of production.
Bophelo Bioscience is the holder of one of a limited number of licenses in Lesotho to import, cultivate, manufacture and export cannabis products. Bophelo Bioscience also holds a 98-year lease over a 14 hectare land package with an option on an additional 194 hectares. Bophelo Bioscience expects to establish a 5 hectare greenhouse facility in the first quarter of 2019, which they will use to cultivate high quality, low-cost cGAP cannabis products for extraction and export to international markets. Bophelo Bioscience’s site is located near the town of T’sakholo; which is approximately 70 km south of Maseru, Lesotho’s capital city. The site has good soil conditions, access to an abundant and naturally occurring pure water supply, as well as access to cheap electricity. To service the large-scale grow operation will be a full cannabis extraction facility capable of producing over 4 million grams of concentrates and oils per year.
Lesotho was the first African country to legalize the cultivation and manufacturing of cannabis and has attracted international investments from major cannabis companies such as Canopy, Aphria and Supreme. Lesotho is a small, mountainous, high altitude country entirely landlocked by South Africa, with a temperate, low humidity climate boasting an abundance of sunshine, clean air and pristine spring water; all of which provide ideal conditions for greenhouse cultivation. First cannabis was exported from Lesotho in early 2018 and the Lesotho government has indicated that outdoor cultivation may be permitted from 2019, while the outdoor cultivation of hemp is already permitted. Lesotho has international trade agreements with over 30 countries including Canada, United Kingdom, Australian and the EU and has low tax structure of 10% with full deductibility of expenses.
Kiran Sidhu, CEO and Director for Halo comments: “We are very excited to partner with Bophelo Bioscience as they have the largest land package in Lesotho, which has an ideal environment to grow low cost cannabis which can be extracted into high quality oils and concentrates to be sold internationally. As the global cannabis market continues to mature and open up around the world, having a cGMP facility in Lesotho with abundant cGAP extractable cannabis will provide Halo with a competitive advantage to serve international markets, including Europe.”
Bophelo Bioscience and Wellness (Pty) Ltd is based in the Kingdom Lesotho and is a holder of one of a limited number of licenses issued to produce cannabis products. The company currently owns a large 14 hectare land package with an option on an additional 194 hectares which it will use to cultivate high quality, low-cost cannabis product to be extracted and sold internationally. The company is committed to corporate social investment and development and has partnered with the Maputhi Matsoso Development Trust to ensure the uplifting of local communities in Lesotho.
Investors are cautioned that, except as disclosed in the information circular prepared in connection with the Transaction or this news release, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Halo should be considered highly speculative.
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”. 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, level of activity, performance or achievements of Halo 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.