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Halo Labs Enters Africa Cannabis Market Through Bophelo Acquisition

Alex Oleinic

Halo Labs Inc (OTC: AGEEF), a Canadian cannabis extraction company, said it will expand globally through the acquisition of Lesotho-based Bophelo Bioscience & Wellness.

Prior to agreeing on the acquisition, Halo Labs and Bophelo were partners working together on a 5-hectare cultivation and production site. Now, Halo plans to acquire all 40.79 million shares of Bophelo for CA$24.7 million ($18.4 million).

Why It's Important

Lesotho is the first African country that allowed growing medical marijuana and consumption for medical patients. The country and region has the potential to become a major export hub for cannabis, given its favorable climate, proximity to Europe and low cost of production.

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In a recent report, Prohibition Partners estimated the African cannabis market could reach $7.1 billion by 2023.

Kiran Sindu, CEO of Halo Labs, expects the Bothelo facility to export cannabis to the European market at $10 per gram, while the all-in cost would not exceed $2 per gram.

In addition, the acquisition of Bophelo will provide Halo Labs with an international platform for its cannabis products.

What's Next

Once the facility is fully operational, Bophelo will be able to harvest cannabis twice per annum and will have the potential to produce around 4.6 million of EU GMP compliant cannabis concentrate.

Halo expects the initial planting to take place in November and the first harvest to be completed by the second quarter of 2020.

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