JOHANNESBURG, June 20 (ANA) - US cannabis oil and concentrates manufacturer Halo Labs said this week it had entered into a non-binding letter of intent to acquire Bophelo Bioscience & Wellness, a move that would strengthen its position in Lesotho which is fast becoming Africa's export gateway to the global cannabis market.
Lesotho is the first African country to legalise the cultivation and manufacturing of medicinal cannabis, becoming one of the most sought-after locations for cannabis operations in the world. It has issued a limited number of licences since legalisation in 2016 and has been exporting cannabis since early 2018.
Halo’s initial partnership with Bophelo includes operation of the five-hectare cultivation and production site and purchase of its entire production in exchange for a 20 percent equity stake and a royalty on cannabis sales.
Halo now intends to purchase the entire issued share capital of Bophelo for nearly 41 million common shares in the capital of Halo, worth approximately USD $18.4 million.
"This transaction is expected to strengthen Halo’s position in a region strategically set to become the international breadbasket of Good Agricultural and Collecting Practice (GACP) and EU Good Manufacturing Practices (GMP)-grade cannabis isolates and distillates," it said.
"While most of the licences issued to date restrict cultivation to 2-3 hectares and indoor or greenhouse growing, Bophelo operates one of the largest sites in Lesotho at 5 hectares. The state has also given Bophelo preliminary approval to expand up to 200 hectares and has indicated they would consider granting permission for outdoor growing from 2019 onwards, following consultation with the International Narcotics Control Board."
Sidhu said Bophelo had secured this site with a 20-year lease with an option to renew for an additional 30 years.
- African News Agency (ANA)
