Halo Collective Provides Update on EUGMP/GACP Certifications of Bophelo Bioscience in Lesotho - Halo Collective

Halo Collective Provides Update on EUGMP/GACP Certifications of Bophelo Bioscience in Lesotho

Picture 1:Irrigation lead Motlalepula excited for the upcoming harvest

Not for Distribution to U.S. Newswire Servicers or For Dissemination in the United States
All figures in USD unless stated otherwise

Toronto, Ontario – March 19, 2021 – Halo Collective Inc. (“Halo” or the “Company“) (NEO: HALO, OTCQX: HCANF, Germany: A9KN) is pleased to provide a comprehensive update about Bophelo Bioscience & Wellness (Pty) Ltd. (“Bophelo“), and it’s proposed European Union Good Manufactures Practices (“EUGMP”) and Good Agricultural and Collection Practices (“GACP”) certifications(collectively, the “GMP/GACP Certifications“).

In 2020, Bophelo quadrupled the amount of cultivation space despite setbacks resulting from the COVID-19 pandemic. With the easing of restrictions, the next key step is the proposed commencement of cannabis exports to the E.U., U.K., and Australia. The Company expects the first export to occur within the sixty days subsequent to Bophelo obtaining GACP certification.

The quality growing and manufacturing consultant, Pharmaconsulta Ltd. (“Pharmaconsulta“), is an independent consultancy firm based in Malta (E.U.), that specializes in pharmaceutical regulatory affairs. After multiple visits to the site and a comprehensive review of the Company’s standard operating procedures, Pharmaconsulta is expected to issue both GMP and GACP certifications after Bophelo meets all requirements.

GACP Update

Pharmaconsulta confirmed that Bophelo’s operation had met 90% of GACP requirements. Bophelo is expected to finish the remaining 10% of the requirements within the next 60 days. The main projects that are underway are:

  • Fencing, a robust surveillance system, and security upgrades
  • Employee ablutions and a cafeteria
  • Infrastructure improvements and upgrades, including but not limited to, internet, electrical power upgrades, backup power generators, and an extra water borehole

Earlier this month, Bophelo commenced installation of double security fencing 2.5 meters high and 1,600 meters long. The Company expects the fence to be completed within 60 days and once finished the fence will encircle the entire site.

Construction on the ablutions building and attached cafeteria designed to meet the anticipated growth in the labor force resumed three weeks ago.  The ablutions are expected to be completed within 60 days.

Bopehlo’s contracted security company has commenced the installation of HikVision® security cameras on the site. When finished, at least 64 security cameras will provide detailed monitoring and surveillance for the initial 5-hectare greenhouse site.  Bophelo has hired a Chief Security Officer, and we are rapidly building upon strict Standard Operating Procedures (SOPs) to ensure security on par with Halo’s U.S. operations.

Picture 2: Day one of fence installation
Picture 3: First camera installed and functioning
Picture 4: Security fencing, a robust surveillance system, and security upgrades

European Union Good Manufacture Practices (EUGMP) Update

Manufacturing plans are on track to build out an on-site extraction facility at Bophelo as large as Halo’s C1D1[1] extraction room in Medford, Oregon of approximately 80 square meters (800 square feet).  This extraction room and the accompanying lab will be built to EUGMP specifications, which will allow for export of oils and concentrates worldwide where allowed.  Work started on a 16 square meter (160 sq. ft.) interim extraction room, allowing a safe training environment as Bophelo management familiarize local employees with the safe handling of explosive gases and flammable liquids.  The extraction unit is on-site, and we expect the first runs to occur next month.  Andreas Met, Co-founder and Chief Operating Officer of Halo states, “We are in the process of building a second ‘chicken coop’ based on the design of the original extraction space I built in my backyard when we started the Company and represents a major milestone. Meanwhile there is demand from customers clamoring to buy cannabis extracts license to license in Lesotho to serve medical markets that do not require EUGMP certification.  This a unique feature of Lesotho versus our European and Canadian competitors: the ability to supply medical distributors and make profits in Africa.”

Andreas Met further commented on the overall progress at Bophelo: “Both GMP and GACP certifications will unlock the full value of the Bophelo operation. We made both critical milestones top priorities.” Furthermore, Mr. Met said: “We are planting, growing, and harvesting high-quality cannabis, equal in quality to what we grow at our East Evans Creek farm in Oregon.  This is a major accomplishment and represents the significant effort and growth our leadership team has made in a short time. Furthermore, once the extraction facility is complete our concentrates will be exported all over the world to legal markets under EU GMP.”


[1] Division 1 is a subset of a Class I manufacturing environment and is classified as an area where explosive or flammable gas, vapors or liquids mentioned above can exist under normal, operating conditions and pose no safety risk.

Picture 5: Holy Grail #10 from DNA Genetics cultivated in Lesotho

Bophelo continues strain hunt efforts to secure more production strains for cultivation. The propagation team is working to identify ten OG DNA Genetics strains along with genetics from other well-known breeders local and afar.

Additionally, pollen has been harvested from premium selected male plants and will be used to expand the internal breeding program. The auto flower strains are thriving in the local environment.  Andreas Met states, “We believe we will become successful breeders of local—climate-adapted auto flowers. We will either use the seeds ourselves (low-cost production) or possibly become a leading seed supplier to other farms in Lesotho.”

Harvest Underway

Bophelo commenced harvest on two hoop houses with one hoop house already on the hanging racks. There are still five hoop houses growing auto flowers with an expected harvest by late April.  A window of opportunity was identified to plant and secure an additional two hoop houses in which the harvest is expected to be complete by the middle of May. The Company expects a total biomass harvest in the current season to be approximately 500 kilograms.

Andreas Met Fully Transitioned to Africa

Andreas Met has fully transitioned his relocation to Johannesburg, South Africa. He spends a minimum of four days a week living in Lesotho, actively managing all operations in Tsa’Kholo Lesotho.  Mr. Met states, “the location in Lesotho is spectacular, and the local people (our workers) are young and very eager to learn. There is no doubt in my mind we have what will be a winning team on the global stage.  Bophelo is making a huge difference to the local economy: helping disadvantaged people (women and youth) learn valuable new skills and contributing to the local economy. It’s simply an amazing—once in a lifetime opportunity that I am so proud to be a part of leading.”

Picture 6: Andreas Met scoping trichomes shortly before harvest

Louisa Mojela, Executive Chairman of the Halo Board of Directors comments on the economic benefits to the previously disadvantaged communities within the area of Tsakholo, where Bophelo’s operation is located, “We currently employee over sixty employees with a staffing plan that will expand in the next quarter. All our employees receive skills development and training which bodes very well for the community and Halo. This has been remarkable and pleasing progress.”

About Halo Collective

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. Halo continues to evolve its business and scale efficiently, partnering with trustworthy leaders in the industry, who value the Company’s operational expertise in bringing top-tier products to market. Current growth includes expansion in key U.S. markets, the United Kingdom and Africa, with planned expansion into the Canadian retail market.

Halo is led by a strong, diverse, and innovative management team with deep industry knowledge and blue-chip experience. The Company is currently operating in the United States in California and Oregon. The Company sells cannabis products principally to dispensaries under its brands, Hush, Mojave, and Exhale, and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™) and FlowerShop*, a cannabis lifestyle and conceptual wellness brand in which G-Eazy is a partner and key member of Flowershop*.

As part of continued expansion and vertical integration in the U.S., Halo boasts several grow operations throughout Oregon and California. In Oregon, the Company has a combined 7 acres of outdoor cultivation, including East Evans Creek, a six-acre grow site in Jackson County, and Winberry Farms, a one-acre grow site located 30 miles outside Eugene in Lane County. In California, the Company is building out Ukiah Ventures; a planned 30,000-square-foot indoor grow, processing, and manufacturing facility including up to an additional five acres of industrial land to expand. Recently, Halo partnered with Green Matter Holding to purchase Bar X Ranch in Lake County, developing up to 80 acres of cultivation which would comprise the largest grow in Northern California.

Internationally, the Company is currently cultivating cannabis at Bophelo in Lesotho, which holds one of the most extensive marijuana cultivation licenses in Africa with a future capacity of up to 495 acres. To further Halo’s global presence, the Company has recently acquired CBPM importation and distribution licensing in the United Kingdom via cannabis suppliers Canmart Ltd (“Canmart”). Halo expects the cultivation and manufacturing operations of Bophelo, combined with the importation and distribution capabilities of Canmart, to drive a well-positioned business to serve the U.K. market.

The Company also has acquired a range of software development assets, including technology platforms CannPOS, Cannalift, and, more recently, CannaFeels. Halo also owns the discrete sublingual dosing technology, Accudab.

For further information regarding Halo, see Halo’s disclosure documents on SEDAR at

Contact Information

Halo Collective Inc.

Investor Relations

info@haloco.com

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking information may relate to anticipated events or results including, but not limited to the development and prospects of Bophelo’s operations and the granting of certifications, Halo’s planned expansion into the Canadian retail market, the expected size and capabilities of the final facility planned at Ukiah Ventures, the size of Halo’s planned cultivation facility in Northern California and the ability of Bophelo and Canmart to serve the E.U., U.K. and Australian market.

By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: unforeseen delays or circumstances that prevent the applicable stock exchanges from commencing trading in the Company’s shares or warrants; delays in obtaining required licenses or approvals, delays or unforeseen costs incurred in connection with construction, the ability of competitors to scale operations in Northern California, delays or unforeseen difficulties in connection with the cultivation and harvest of Halo’s raw material, changes in general economic, business and political conditions, including changes in the financial markets; and the other risks disclosed in the Company’s annual information form dated April 16, 2020 and available on the Company’s profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.

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