Bophelo continues to operate during the COVID-19 pandemic with special approval from the local police. The first of three planned 2021 crops is already underway with a quarter of the summer harvest in the ground; 1,983 clones have filled 500 square meters of canopy. Bophelo anticipates planting 6,000 autoflower plants to fill an additional 2,000 square meters of hoop houses by the end of January 2021. By April 2021, Bophelo expects the harvest to yield approximately 800 kilograms of trimmed flower and 800 kilograms of material to produce medicinal cannabis oils. Bophelo plans to plant second and third crop within 2021.
To support a planned year-round perpetual harvest and future exports to MedCan, Bophelo has also launched a Mother Program with diverse strains including those from OG DNA Genetics. Currently, 40 mother plants across ten strains are thriving. Bophelo plans to grow the mother stock to 150 plants across more strains by continuing the strain hunt.
In addition, Louisa Mojela, Chair of the Board of Halo and well-known benefactor of the Lesotho community, has developed a recruitment program for local women to enter the Bophelo workforce to receive training in leading the day-to-day growing operations. The Company plans to recruit and train 30 leads with a focus on women empowerment and build a talent pool capable of sustaining operations.
Andreas Met, Halo's Co-Founder and Head of International Operations commented, "I'm thrilled with the progress we have made at Bophelo. Not only do we have a strong senior leadership team in place, but our young leaders in Lesotho are developing rapidly. I believe we are in the process of shaking up the cannabis world as the local talent is eager to learn and will be competitive with any grower on the planet. We will be ready to fulfill our offtake with MedCan once the pandemic-related restrictions ease up." Mr. Met recently relocated to South Africa.
In August 2020, Bophelo entered into an offtake agreement ("The Offtake Agreement") with MedCan for the sale of bulk cannabis biomass primarily into the European market. The Offtake Agreement specifies initial deliveries of up to 10,000 kilograms which are now expected to commence in 2021 and are anticipated to be completed in 2022. Bophelo has been working with Pharmaconsulta Limited, a Good Agricultural and Collection Practices ("cGACP") focused consulting firm to obtain Maltese cGACP certification which Bophelo now anticipates achieving by mid 2021.
Pursuant to the Offtake Agreement, MedCan will pay Bophelo prevailing market rates calculated on the basis of a price per gram of delivery weight. The price will be determined on the basis that MedCan shall seek to sell the batch at the highest value achievable in the market, currently estimated to be $3 per gram. The bulk cannabis to be delivered includes A and B-grade trimmed flower buds, as well as bulk material consisting of trimmings and sugar leaves for medicinal oil production.
MedCan has received approval of Malta Enterprise, a Maltese government agency, to carry out the importation and production of cannabis for medicinal purposes. MedCan has advised the Company that they have identified a facility that previously manufactured medicines under cGMP as approved by the European Medicines Agency and is currently negotiating long term lease with the landlord. MedCan expects operating from this facility will increase speed to market and avoid lengthy time retrofitting a facility for cGMP operations. MedCan intends to import cannabis from Bophelo pursuant to the Offtake Agreement and produce cannabis-based medicinal products for distribution and sale throughout the European Union and the other markets worldwide. MedCan has advised the Company that they anticipate they will be in a position to commence import and export activities as soon as practicable.
Mr. Met added, "We are pleased that MedCan, our Maltese partner, is progressing towards the credentials required to export cGMP approved cannabis from Malta. Our end goal, now in sight, is to process, manufacture, and distribute medical cannabis products to patients worldwide."
About Halo Labs
Halo is a leading, vertically integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils and concentrates, and has sold approximately six million grams of oils and concentrates since inception. Halo continues to evolve its business and scale efficiently, partnering with trustworthy leaders in the industry, who value the Company's operational expertise in bringing top-tier products to market. Current growth includes expansion in key U.S. markets, the United Kingdom and Africa, with planned expansion into the Canadian retail market.
Halo is led by a strong, diverse and innovative management team, with deep industry knowledge and blue-chip experience. The Company is currently operating in the U.S. in California, Oregon and Nevada. The Company sells cannabis products principally to dispensaries under its own brands Hush, Mojave, Exhale, and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™), Winberry and FlowerShop, a cannabis lifestyle and conceptual wellness brand in which G-Eazy is a partner and key member.
As part of continued expansion and vertical integration in the U.S., Halo boasts several grow operations throughout Oregon and California. In Oregon, the Company has a combined seven acres of outdoor cultivation, including East Evans Creek, a six-acre grow site in Jackson County, and Winberry Farms, a one-acre grow site in Lane County. In California, the Company is building out Ukiah Ventures, a planned 30,000-square-foot indoor grow, processing and manufacturing facility, including up to an additional five acres of industrial land to expand. Recently, Halo partnered with Green Matter Holding ("GMH") to purchase Bar X Ranch in Lake County, with plans to develop up to 80 acres of cultivation, which would comprise the largest grow in Northern California.
Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd ("Bophelo") in Lesotho, which holds one of the largest marijuana cultivation licenses in Africa with a future capacity of up to 495 acres. To further Halo's global presence, the Company recently acquired CBPM importation and distribution licensing in the United Kingdom via cannabis suppliers Canmart Ltd ("Canmart"). Halo expects the cultivation and manufacturing operations of Bophelo, combined with the importation and distribution capabilities of Canmart, to drive growth of a well-positioned business to serve the U.K. market.
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 are not limited to, statements about the prospects and operations of Bophelo, the transactions contemplated by the Offtake Agreement, the prospects and operations of MedCan, the prospects and operations of Canmart, the development of the cannabis market in Europe, sales numbers, Halo's planned expansion into the Canadian retail market, the expected size and capabilities of the final planned facility at Ukiah Ventures and the size of Halo's planned cultivation facility in Northern California.
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 proposed dispensaries and other operations; negative results experienced by the Company as a result of general economic conditions or the ongoing COVID-19 pandemic; delays in the ability of the Company 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 that may impact the relative size of the Company's growing operation; delays or unforeseen difficulties in connection with the cultivation and harvest of Halo's raw material; 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; 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; and the other risks disclosed in the Company's annual information form dated April 16, 2020 and available on the Company's profile at www.sedar.com. 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.
SOURCE Halo Labs Inc.
Halo Labs, Investor Relations, [email protected]
Related Links
https://halocanna.com/
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