LESOTHO: Halo Labs announced it has signed a letter of intent to enter into a partnership with Bophelo Bioscience and Wellness Pty Ltd, 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 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.”