Mr. Tej Virk reports
HALO COLLECTIVE'S BOPHELO BIOSCIENCE & WELLNESS SIGNS DISTRIBUTION AGREEMENT WITH CANTOURAGE GMBH FOR RAPIDLY GROWING EUROPEAN MARKET
Halo Collective Inc.'s wholly owned subsidiary, Bophelo Bioscience & Wellness Pty. Ltd., has signed a processing and distribution agreement with Cantourage GmbH, one of Europe's leading providers of medical cannabis. With this agreement, Bophelo has secured a path to the rapidly growing European medical cannabis market for products cultivated at its current five-hectare campus, with future expansion of 200 hectares, in Lesotho. Bophelo plans to export cannabis material to Cantourage for processing into certified medical cannabis products, with the first European Union sales targeted for 2022.
Bophelo's agreement with Cantourage is the latest step forward in Halo's initiative to reorganize its international assets into an ethically sourced company named Akanda Corp., which is underpinned by trusted brands. Bophelo achieved good agriculture and collection practices in August, 2021. Over the coming quarters, Akanda plans to leverage Bophelo to ramp up production volumes at its scalable grow campus situated in the Mafeteng special economic zone for export to Europe. The European market is expected to reach $3.8-billion in annual sales by 2025.
"We are moving quickly to establish a presence in Europe for our high-quality medical cannabis products, and working with the seasoned industry veterans of Cantourage enables us to navigate the European regulatory system and reach patients promptly and cost-effectively," commented Tej Virk, chief executive officer, co-founder and director of Akanda. "We are most excited about bringing some of the award-winning brands, including DNA Genetics dried flower, to the U.K. [United Kingdom] and broader European market. CanMart in the U.K. is a fully licensed, strategic manufacturing and fulfilment centre positioned to import, distribute and export EU GMP [European Union good manufacturing practice] medical cannabis products. Cantourage is the ideal partner, well known for providing cultivators fast-track access to the European medical cannabis market, which requires stringent EU GMP quality standards."
"By partnering with Akanda and Bophelo, Cantourage intends to provide doctors and patients with greater choice of therapy options and cultivars," commented Philip Schetter, chief executive officer of Cantourage. "In addition, we will be able to offer products which were grown in a sustainable and ecofriendly way thanks to their admirable business practices and Lesotho's climate conditions, which are excellent for the cultivation of medical cannabis."
Founded in 2019, Berlin-based Cantourage has established itself as one of the leading European companies in the medical cannabis sector, helping producers access the European market without having to deal with complex and lengthy regulatory processes. Cantourage is led by the same team that founded Pedanios GmbH in 2015, one of the first federally licensed companies in Germany to specialize in the importation and distribution of medical cannabis. Within less than a year, Pedanios was the dominant leader in the market for medical cannabis flower, and the company was subsequently acquired by Aurora Cannabis Inc. in 2017. The team is now continuing to shape the medical cannabis market in Europe with Cantourage.
According to Prohibition Partners, the value of the European cannabis market is expected to grow from over $475-million by the end of 2021 to $3.8-billion in 2025. This makes Europe the world's third-largest cannabis market, behind the United States and Canada.
The completion of Halo's international reorganization remains subject to: definitive documentation; the approval of the Halo board of directors; and the receipt of all required regulatory approvals. There can be no certainty that the international reorganization will be completed on the terms described in this press release or at all.
About Halo Collective Inc.
Halo is a leading, vertically integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils and concentrates, and has sold approximately nine million grams of oils and concentrates since inception. The company continues to expand its business and scale efficiently, partnering with trustworthy leaders in the industry that value Halo's operational expertise in bringing top-tier products to market.
Halo currently operates in the United States (Oregon and California), Canada, South Africa (Lesotho) and the United Kingdom. The company sells cannabis products principally to dispensaries in the United States under the brands Hush, Mojave and Exhale, and under licence agreements with Papa's Herb, DNA Genetics, Terphogz and FlowerShop, a cannabis lifestyle and conceptual wellness brand that includes G-Eazy as 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 two planned in California. In Oregon, the company has a combined 11 acres of owned and contracted outdoor cultivation, including: East Evans Creek, a six-acre grow site in Jackson county with four licences owned and operated by Halo and two third party licences under contract to sell all products to Halo; Winberry Farms, a one-acre grow site located 30 miles outside of Eugene in Lane county with a licence owned and operated by Halo; and William's Wonder Farms, a three-acre grow site in Applegate Valley, under contract to sell all of its product to Halo pending the closing of Halo's acquisition of its licences and business assets.
In California, the company is building out Ukiah Ventures, a planned 30,000-square-foot indoor cannabis grow and processing facility, which will include up to an additional five acres of industrial land to expand the site. Recently, Halo partnered with Green Matter Holding in California to purchase a property in Lake county, developing up to 63 acres of cultivation, comprising one of the largest licensed single-site grows in California. Halo also plans to expand its operations in California by opening three dispensaries in North Hollywood, Hollywood and Westwood, one of which may serve as the first FlowerShop-branded dispensary.
In Canada, Halo acquired three KushBar retail cannabis stores in Alberta as a first in its planned entry into the Canadian market, leveraging its Oregon and California brands. With the KushBar retail stores as a foundation, the company plans to expand its foothold in Canada.
Halo has also acquired a range of software development assets, including CannPOS, Cannalift and, more recently, CannaFeels. In addition, Halo owns a discrete sublingual dosing technology, Accudab. The company intends to spin off these assets, along with its intellectual property and patent applications, into its subsidiary, Halo Tek Inc., and expects to complete a distribution to shareholders on a record date to be determined by Halo.
Halo has announced its intention to reorganize its non-U.S. operations into a newly formed entity named Akanda, whose mission will be to provide high-quality and ethically sourced medical cannabis products to patients worldwide. Akanda will seek to deliver on this promise while driving positive change in wellness, empowering individuals in Lesotho and uplifting the quality of the lives of employees and the local communities where it operates, all while limiting its carbon footprint. Akanda will combine the scaled production capabilities of Bophelo Bioscience & Wellness, Halo's Lesotho-based cultivation and processing campus located in the world's first special economic zone containing a cannabis cultivation operation, with the distribution and route-to-market efficiency of CanMart Ltd., Halo's United Kingdom-based, fully approved pharmaceutical importer and distributor that supplies pharmacies and clinics within the United Kingdom. With a potential maximum licensed canopy area of 200 hectares (495 acres), Bophelo has scalability that is arguably unmatched in the world today.
We seek Safe Harbor.
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