An anonymous director reports

BOPHELO ENTERS INTO $30 MILLION OFFTAKE AGREEMENT WITH MEDCAN

Bophelo Bio Science & Wellness Pty. Ltd., a company registered in the Kingdom of Lesotho, and a wholly owned subisidary of Halo Labs Inc. have entered into an offtake agreement with Medcan Ltd., a company incorporated in the Republic of Malta, for the sale of bulk cannabis biomass, primarily into the European market. The term of the agreement is for a period commencing on Aug. 3, 2020, and ending on the earlier of: (i) the date on which Medcan has purchased the full specified volume biomass from Bophelo; or (ii) the seventh anniversary of the effective date.

The contract specifies initial deliveries of up to 10,000 kilograms. Initial shipments are expected to commence in the fourth quarter of 2020. Based on current European demand, Medcan anticipates taking delivery of the initial 10,000 kilograms by the end of 2021. Medcan will pay Bophelo within 15 days of receipt and acceptance of the product.

Bophelo has been working with Pharmaconsulta Ltd., a good agricultural and collection (GACP) accreditation specialist consulting firm, based in Malta, to obtain Maltese GACP certification, that Bophelo anticipates achieving prior to the end of 2020.

Bophelo will procure the transport of the biomass by a licensed cannabis transport operator, and deliver the biomass to Medcan in containers, complying with the applicable agricultural practice standards, or as otherwise agreed to by the parties. All the biomass is subject to Medcan's inspection and acceptance or rejection at Bophelo's facility in Lesotho. Such inspections shall be conducted by a compliant laboratory.

Bophelo shall ensure that all bulk extract delivered to Medcan complies with the specifications agreed, insofar as each batch must provide a total THC (tetrahydrocannabinol) concentration of at least 2 per cent. This shall be verified by ensuring that each one gram of bulk extract yields a combined total of at least 120 milligrams of THC and THCA (tetrahydrocannabinolic acid), using a predetermined formula as contained in the agreement. Bophelo currently has approximately 186 kilograms of clean, tested material, already packaged and stored in a secure vault. All material produced to date at Bophelo has tested completely clean with not a trace of pesticide, mould, fungus or heavy metals.

Pursuant to the agreement, Medcan will pay Bophelo prevailing market rates, calculated on the basis of a price per gram, based on the 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 processing into distillate.

Halo's founders have known Medcan's partner Kase Manufacturing located in California, which played an instrumental role in setting up this contract.

About Medcan Ltd.

Medcan is a closely held private company, incorporated in the Republic of Malta, and led by an experienced management team with a proven record of operating in highly regulated industries.

Medcan has obtained a letter of intent issued by the government of Malta that provides approval for the setting up of a business and industrial factory in Malta to carry out the production of medical cannabis in finished format.

Furthermore, Medcan is currently in the process of obtaining good manufacturing practice (GMP) certification and fulfilling licensing requirements, following which it will be issued with a licence to produce medical cannabis by the Malta Medicines Authority. This licence will allow for the processing, manufacturing and distribution of marijuana for medicinal use by patients in Malta, as well as exportation of finished products to other countries worldwide, where its use is legal.

Medcan is setting up a state-of-the-art industrial facility and laboratory in Malta that will be initially used for the trimming and repackaging of biomass and, in later stages, for the production of cannabis-oil-based products. Medcan has partnered with Kase Manufacturing to provide technology, expertise and management.

About Halo Labs Inc.

Halo is a leading cannabis cultivation, manufacturing and distribution company that grows, extracts and processes quality cannabis flower, oils and concentrates, and has sold over five million grams of oils and concentrates since inception. Additionally, Halo has continued to evolve its business through delivering value with its products and now through 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 acquired a dispensary permit in Los Angeles, and has entered into binding agreements to acquire UVI in California, three KushBar-branded dispensaries, five development permits in Alberta, Canada, and Canmart Ltd., which holds wholesale distribution and special licences 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 200-hectare cultivation zone through Bophelo Bioscience & Wellness, as well as planned importation and distribution in the United Kingdom through Canmart.

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