TORONTO–(BUSINESS WIRE)–Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that Bophelo Bioscience & Wellness (“Bophelo”) has signed a strategic alliance and seed purchase agreement with OG DNA Genetics Inc. (“DNA Genetics” or “DNA”), to give the Bophelo exclusive rights to develop new and existing DNA Genetics’ strains of medical cannabis in Lesotho (the “Strategic Alliance”) for worldwide exportation.
Halo signed a definitive agreement to acquire Bophelo on November 27th, 2019. The acquisition of Bophelo by Halo is expected to close within the next 30 days.
DNA is one of the world’s leading creators of high-quality cannabis seeds, whose strains consistently contain high cannabinoid and terpene concentrations. DNA’s cannabis strains already command premium market prices in Canada, the United States and Europe and are some of the most sought-after strains and seeds in the world.
Under the terms of the Strategic Alliance, Bophelo is the only company in Lesotho that has the right to grow and develop DNA’s strains of cannabis through breeding, cultivation, phenotyping and prompt regulatory certification.
Louisa Maliako Mojela, Chairman of Bophelo, commented, “Bophelo’s strategic alliance with DNA Genetics in Lesotho gives us a significant competitive edge, as we strive to become one of the world’s leading exporters of medical cannabis and related products.
Our vision is to create the largest medical cannabis cultivation zone on the planet at Bophelo. This is fast becoming a reality. The maiden harvest of 1,000 plants is on course for early Q2 2020, the first phase of greenhouse construction nearing completion and we are securing international GACP certification for our site. The alliance with DNA is even further validation of how rapidly our Lesotho operations have developed and the unlimited potential of this opportunity.
Now, with the introduction of DNA’s award-winning world-class cannabis strains, we can accelerate our breeding program to grow medical-grade cannabis in very large quantities at Bophelo, which will command premium export prices.”
Strategic Alliance Highlights
Bophelo granted exclusive rights of use in Lesotho to all existing cannabis strains developed by DNA Genetics
- DNA’s cannabis strains are known worldwide and command premium pricing
- Initial 5-year term of Strategic Alliance, with successive 5-year renewals
- Bophelo to have right of first refusal in Lesotho to all new cannabis strains developed by DNA
DNA to supply cannabis seeds to Bophelo in Lesotho at discounted wholesale prices, through exclusive seed purchase agreement
- DNA has in place all necessary permits to commence export of cannabis seeds to Lesotho immediately
Strategic Alliance expected to deliver substantial near-term enhancement of Bophelo’s growing capabilities at the 205-hectare cannabis cultivation zone
- Introduction of DNA cannabis strains to strengthen Bophelo’s local genetic pool, increasing cannabinoid and terpene concentrations
- Future strain breeding program to be discussed in 12 months to optimize outdoor growing at Bophelo
The Strategic Alliance
Under the terms of the Strategic Alliance, Bophelo has secured sole rights to full use of DNA Genetics’ cannabis strains in Lesotho.
The initial period of the Strategic Alliance is 5 years, with successive 5-year renewal options in place. During this time Bophelo will be the only company in Lesotho that has the right to grow and cultivate existing and new cannabis strains developed by DNA. Should other companies wish to use DNA’s cannabis strains in Lesotho, they will have to license or acquire them from Halo.
In addition to this, Bophelo and DNA have entered into an exclusive seed purchase agreement. This agreement will enable Bophelo to commence immediate imports to Lesotho of cannabis seeds for cultivation from DNA. DNA has in place all necessary permits to be able to export cannabis seeds to Lesotho.
Once the Strategic Alliance has been active for 12 months, Bophelo and DNA will then discuss a future strain-breeding program. The objective of this program will be to develop strains of high-quality cannabis that are best suited to the outdoor growing environment in Lesotho. Successful realization of this goal could lead to fast-track development of the full 205-hectare cultivation zone.
Bophelo’s Operations in Lesotho
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, good soil and low electricity costs. The favorable high altitude and low humidity climate provide clean growing conditions in this pristine mountainous region. With over 200 days of annual sunshine, Bophelo can support as many as 3 full growing and harvest seasons a year. European Good Agricultural and Collecting Practices (“GACP”). Site certification visits at Bophelo are scheduled to continue in the second half of January 2020, to confirm that the greenhouses under construction and growing processes conform to the appropriate international standards.
The first harvest of up to 1,000 cannabis plants at Bophelo is on course for April 2020. Bophelo anticipates being able to commence export sales shortly after. The introduction of DNA Genetics’ cannabis strains is expected to strengthen and improve future crops at Bophelo, yielding further considerable production and cost efficiencies. In addition to the advantageous cost of production that natural resources provide, the Company expects revenue generated from exportation of Bophelo cannabis to be a significant contributor to its bottom line.
Adding further comment about the opportunity afforded by working with Bophelo, DNA Genetics’ CEO, Charles Phillips, said, “Following our recent exclusive partnership with Halo in Oregon and our recent visit to the Bophelo cultivation site, we are extremely pleased to join forces with the Bophelo in Lesotho. We believe the opportunity here is exceptional, as Bophelo has an extremely large cultivation site that can be massively scaled in a relatively short period of time. Bophelo is poised to become the international gateway for the export of premium medical-grade cannabis and cannabis based medical products (“CBMPs”) to countries across Europe and Australasia.
Growing conditions in Lesotho are ideal and the prospect of 3 growing seasons a year across a 205-hectare cultivation site is an unparalleled opportunity in the global cannabis industry. With our expertise in developing the highest quality cannabis strains, many of which are already being sold worldwide, we plan to make a significant contribution to this outstanding project.”
About DNA Genetics
Founded in Amsterdam in 2004, DNA Genetics is a global market leader in the production of high-quality cannabis seeds. DNA adopts a professional, responsible and technical approach in development of its cannabis strains.
Over the last decade, DNA has built and curated an extensive genetic library of cannabis strains. To support this, the company has developed proven standard operating procedures for genetic selection, breeding, and cultivation. It has created some of the most well-known products in the market, by combining its high-quality genetics with its expert growing practices. With a win in every single category of the HIGH TIMES Cannabis Cup, many of the top seed companies in the industry use DNA Genetics within their breeding programs.
Bophelo Bioscience & Wellness 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.
Halo is a global 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 4.5 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 our partner Bophelo in the Company’s planned 205-hectare cultivation zone.
Halo plans to build a “Seed to Sale” global distribution network across Europe, and other territories, to supply medical cannabis and cannabis based medical products (“CBMPs”), grown and manufactured at the Company’s 205-hectare Bophelo cannabis cultivation zone, Lesotho.
With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories. Halo recently acquired Dispensary Track platform which will alleviate customer flow constraints experienced by dispensaries and enable direct consumer interaction.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.
Concurrent Private Placement Correction
Pursuant to the release dated January 2, 2019, the shares issued to the third-party finder for facilitating the acquisition of Precisa Medical Instruments Corp. and the concurrent private placement were issued at a deemed price of C$0.28 per share rather than the originally stated C$0.30 per share. All Halo shares issued to such finder are subject to a four month and one day statutory hold period pursuant to applicable securities laws.
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 strategic alliance and seed purchase agreement with DNA Genetics and the development, growth and distribution of new strains of cannabis in Lesotho and elsewhere.
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.