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All figures in USD unless stated otherwise
TORONTO, Feb. 16, 2021 /CNW/ – Halo Collective Inc. (“Halo” or the “Company“) (NEO: HALO) (OTCQX: HCANF formerly AGEEF) (Germany: A9KN) is pleased to announce further imports of Cannabis-Based Products for Medicinal use (“CBPMs“) to the United Kingdom via the Company’s wholly-owned subsidiary Canmart Ltd (“Canmart“). While Canmart had previously imported tincture originating in the European Union (“EU“), its importation program has now expanded to flower products from Canada. Following the Company’s acquisition of Canmart in November 2020, Halo is executing on its plan to import an assortment of CBPMs to qualified UK patients in search of high-quality medical cannabis.
According to Prohibition Partners, the UK population consumes one of the greatest amounts of cannabis per capita in the world, with an estimated 4.7 million cannabis users out of a total general population of 66.4 million.1 While the number of people in the UK who use cannabis to treat chronic health conditions is only 1.4 million, the legal use of medical cannabis is still in its relative infancy. By 2024, the UK medical cannabis market is predicted to be worth nearly £1bn (US$1.3bn), servicing more than 400,000 active patients and, with further regulatory expansion, qualified patients could reach four million during the same time period2.
1 Prohibition Partners Report, December 2019. https://prohibitionpartners.com/reports/#the-uk-cannabis-report.
2 Prohibition Partners Report, December 2019. https://prohibitionpartners.com/reports/#the-uk-cannabis-report
In 2020 Halo’s wholly-owned subsidiary Bophelo Bioscience & Wellness (Pty) Ltd. (“Bophelo“) formally commenced the certification process required to achieve European Good Agricultural and Collection Practices (“EU GACP“). This certification would allow Halo, through Malta and then via Canmart, to distribute Certified Good Manufacturing Practices (“cGMP“) grade cannabis flower and oils throughout the UK and the EU. The Company expects to achieve this certification in Q2 2021 as COVID restrictions have finally abated in Lesotho. Andreas Met, Halo’s Co-Founder and Head of International commented, “I relocated to Lesotho to oversee Bophelo operations. Before our hands were tied due to COVID, but now all the pieces are coming together like a puzzle. Halo efforts going into Lesotho are having a visible impact and showing significant progress.”
Halo expects Canmart will soon be capable of compliantly importing products originating from Bophelo’s licensed 200-hectare cultivation site, one of the few largest licensed cannabis canopies in the international market. Meanwhile, Bophelo continues to cultivate and harvest medicinal cannabis at a consistent and high-quality standard, paired with licensing deals with partners such as DNA Genetics to drive consumer recognition and demand. The quality manufacturing credential will simply formally authorize the exportation and distribution of CBPMs to the UK as well as medical cannabis to other countries in the EU.
“The UK is a significant market opportunity for medical cannabis, and Halo’s acquisition of Canmart last November made us one of the first cannabis companies to have this distribution potential,” commented Kiran Sidhu, CEO and Co-Founder of Halo Collective. “This week we saw fellow market player, Tilray (NASDAQ: TLRY) partner with Grow Pharma start to distribute medical cannabis in the UK, although not yet supplying any CBPMs to patients. We are pleased that Canmart has already been fulfilling medical prescriptions for patients as well as increasing awareness with educational programs for UK patients and physicians. We are happy the others like Tilray are entering to increase market size and patient access.”
While cultivation and GACP credentials are currently underway at Bophelo, Canmart is simultaneously working with Specials Pharma Ltd. to supply a consistent and uninterrupted supply of CBPMs. The flower importation completed this month is the first of many significant imports planned this year, with other shipments in the pipeline from Canada, Australia, and South Africa that are due in Q2 2021. Halo intends to apply for cGMP accreditation for the Canmart distribution facility as well which will enable the Canmart team to take raw material and process it into capsules, tinctures, and traditional flower products onsite. The anticipated cGMP accreditation is expected to increase Canmart’s capacity to deliver medicinal products in the UK and is expected to accelerate Halo’s plans to build a European distribution network.
Sidhu continued, “Through Halo’s vertically integrated global supply chain, UK patients will have access not just to basic oils and tinctures, but will benefit from our high-quality, proprietary, branded flower and oil products. Canmart will be positioned to wholesale products deriving from notable high-grade genetics—DNA Genetics, Zkittlez, and more. We believe UK patients deserve the highest quality cannabis brands and products and Halo intends to deliver them. With added product assembly capacity at Canmart, this will only accelerate the process.”
Established in December 2018, Canmart was one of the first companies set up in response to the legalization of medical cannabis in the UK. With expertise in cannabis education, storage and distribution, Canmart holds all relevant licenses to store and distribute CBPMs in the EU.
Located in the southeast of England, Canmart operates in a 30,000 square foot, third party logistics warehouse, set up to focus on the pharmaceutical and healthcare industries. Leveraging their vast network to bring innovative and high-quality products to market, Canmart currently imports and distributes licensed CBPMs to specialist doctors and their patients throughout the UK, a milestone that began in 2020. Canmart has forged strong relationships with specialist couriers, clinics, hospitals and pharmacies, providing smooth, legal access to products through a multitude of channels–always delivering exceptional service to patients and customers.
Halo is a leading, vertically integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils and concentrates, and has sold approximately eight 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, Africa, the Republic of Malta in partnership with MedCan Ltd., and 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 U.S. in California, Oregon and Nevada. The Company sells cannabis products principally to dispensaries under its own brands Hush, Mojave, Exhale, and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™), Winberry Farms and 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 seven acres of outdoor cultivation, including East Evans Creek, a six-acre grow site in Jackson County, and Winberry Farms, a one-acre grow site 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. Halo has also partnered with GMH to purchase Bar X Ranch in Lake County, California, with plans to develop up to 80 acres of cultivation, which would comprise the largest grow in Northern California.
Recently, the Company has entered into a non-binding letter of intent with Red Light Holland Corp. for the purpose of creating a joint venture to become a licensed psilocybin manufacturer to supply psilocybin products to licensed service centers in the State of Oregon.
Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd (“Bophelo”) in Lesotho, Africa, which holds one of the largest marijuana cultivation licenses in Africa with a future capacity of up to 495 acres. To further Halo’s global presence, the Company recently acquired cannabis-based product for medicinal use (“CBPM”) importation and distribution licensing in the United Kingdom via cannabis suppliers Canmart Ltd. Halo expects the cultivation and manufacturing operations of Bophelo, combined with the importation and distribution capabilities of Canmart, to drive growth of a well-positioned business to serve the U.K. market.
For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.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”. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding the Company’s prospects and proposed distribution of CBPM’s in the UK, Canmart’s importation of cannabis products, the granting of licenses and accreditations to Bophelo and Canmart, Halo’s financing activities and the use of proceeds therefrom, 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 U.K. 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: delays in obtaining required approvals from regulators, 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.
Third Party Information
This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources.
SOURCE Halo Collective Inc.