TORONTO: Halo Labs Inc. has closed its previously announced acquisition of Bophelo Bioscience & Wellness (Pty) Ltd., a news release said. Halo now controls 100% of the issued and outstanding shares of Bophelo.
Concurrently with closing, Ms. Louisa Mojela was appointed as a director and Chairman of Halo’s board of directors and Mr. Philip Van Den Berg has resigned from the Board and remains Chief Financial Officer of the Company.
Acquisition of Bophelo completed and paid for issuing an aggregate of 43,712,667 Halo common shares which, based on the closing price of the Halo Shares of C$0.13 on July 16, 2020, implies a fair value acquisition price of C$5.682 million. Halo has also issued an additional 2,039,334 Halo Shares to GMG Financial Services Ltd. as an arrangement fee.
Based in the Kingdom of Lesotho within South Africa, in the Mafeteng Region, Bophelo is the holder of one of a limited number of operational licenses issued in Lesotho for the production and export 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.
With over 200 days of annual sunshine, Bophelo can support as many as 3 full growing seasons a year. The Phase 1 expansion of Bophelo has launched and as planned will feature a 1.1 hectare build to include 4 hoop houses and 1 Cravo greenhouse. The extra capacity will allow growing of multiple strains of medicinal cannabis for export. The build out is expected to be complete before the South African winter ends. Once fully operational it will house 3 acres of canopy.
This would expose the Company to the UK market which is expected to surpass $3 billion by 2024.1 Additionally, the Company intends to use Lesotho as a platform to sell product where possible in neighboring countries and on the African continent. Africa’s legal cannabis industry could be worth more than $US 7.1 billion annually by 2023 if legislation is introduced in a number of the continent’s major markets.2 Halo will explore other markets for export including Malta, Israel, and Australia.
Additionally, Halo has appointed Ms. Mojela as Chairman of Halo’s Board. Ms. Mojela is one of Africa’s most prominent businesswomen, having successfully founded and listed Women Investment Portfolio Holding Limited on the Johannesburg Stock Exchange which has grown to be worth over USD $250M today. She has led capital raises and held directorships at companies such as Sasol Mining (NYSE: SSL), Ixia Coal, South African Airways, Ericsson SA, Adcorp (SJ: ADR), and Sun International (SJ: SUI) amongst others.
Kiran Sidhu, CEO and Co-Founder of Halo, comments, “I am extremely excited to see the closing of our acquisition of Bophelo finally come to fruition. Halo has been developing this acquisition since late 2018 and this is the culmination of the Halo team’s tireless efforts. By completing our first major step into international markets while also adding incredible talent such as Louisa Mojela to Halo’s Board, Halo is becoming a leader in the cannabis space.”
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 a binding agreement to acquire Canmart Limited which holds wholesale distribution and special licenses allowing the import and distribution of cannabis based products for medicinal use (CBPMs) 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 205-hectare cultivation zone via Bophelo Bioscience & Wellness (PTY) Ltd. as well as planned importation and distribution in the United Kingdom via Canmart Limited.