Halo Labs to Expand Globally and Acquire Bophelo Bioscience

Cannabis Industry in Lesotho, Africa to Become Gateway to EU
Cannabis Markets

Not for Distribution to U.S. Newswire Servicers or For
Dissemination in the United States

TORONTO–(BUSINESS WIRE)–Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF,
Germany: A9KN) is pleased to announce that it has entered into a
non-binding letter of intent (LOI) for the proposed acquisition of
Bophelo Bioscience & Wellness (Pty) Ltd (“Bophelo”) (the “Transaction”).
The Transaction is expected to strengthen the Company’s position in
Lesotho, Africa, a country quickly becoming the continent’s export
gateway to the global cannabis market. Lesotho is the first African
country to grant medical marijuana licenses for cultivation and patient
use and is making strides toward becoming the worldwide export hub for
cannabis. Halo’s planned acquisition of Bophelo brings together two
socially-minded companies on a shared mission to better the communities
in Lesotho.

Halo’s initial partnership with Bophelo included operation of the
5-hectare cultivation and production site and purchase of its entire
production in exchange for a 20% equity stake and a royalty on cannabis
sales. In a growing consumer market, Halo now intends to purchase the
entire issued share capital of Bophelo for 40,786,667 common shares in
the capital of Halo (approximately USD $18.4M or CAD $24.7M).

Supreme Cannabis (TSX: FIRE) and Canopy Growth Corporation (TSX: WEED)
made significant investments in Lesotho recently with Supreme Cannabis
making a CAD $10M strategic investment in Medigrow Lesotho (Pty) in
exchange for a 10% ownership interest in that company, and Canopy Growth
Corporation acquiring 100% of DaddyCann Lesotho (Pty) Ltd for CAD $28.8M.

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. GACP and GMP
designations demonstrate Halo’s capability to grow and manufacture at
scale while adhering to high-quality standards and enables distribution
to European and international pharmaceutical and nutraceutical companies
in these attractive and growing markets.

Beyond providing a source of low-cost cannabis inputs and products for
Europe and other regions, Africa as a continent boasts a strong consumer
market. According to New Frontier, there are over 83 million annual
cannabis consumers on the continent and the current market is estimated
at USD $37.3 billion in combined legal and illegal sales out of the
total USD $344.4 billion worldwide. This emerging opportunity will be
unlocked with increased cannabis decriminalization and legalization
policies, such as neighboring South Africa; which in 2018 approved
private use and decriminalized possession, a market which according to
the March 2019 Prohibition Partners Africa Report is now expected to be
worth USD $1.851 billion by 2023.

Kiran Sidhu, the CEO of Halo Labs, commented, “The high-altitude,
low-humidity climate and access to water, as well as low cost utility,
tax, and labor rates mean cannabis in Lesotho can be cultivated
naturally at a very competitive cost. While most of the licenses 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 INCB (International Narcotics Control Board). Bophelo has
secured this site with a 20-year lease and option to renew for an
additional 30 years.”

Once fully operational on the initial 5 hectare site, Bophelo intends to
harvest GACP cultivated cannabis approximately twice per annum and will
have the potential to produce approximately 4.6M grams of high quality
EU GMP cannabis concentrate per annum.

Mr. Sidhu continued, “We anticipate EU GMP cannabis concentrate would be
exported to the European market at an estimated price of USD $10 per
gram while our FOB Lesotho all-in cost ready for export would not exceed
USD $2 per gram. We expect the initial planting to occur in November and
to complete our first harvest by the second quarter of 2019. Bophelo
will also give Halo Labs an international platform for our innovative
products like the DabTabs™ Dablets, the first ASTM C373-18 certified
doseable cannabis product.”

Halo continues to solidify its reputation as a leader in cannabis oil
and concentrates and is now the first U.S. based publicly traded company
to make an investment into Lesotho. Upon closing of the Transaction,
Halo will expand its global footprint and be one of the first cannabis
companies in the world to have products and technology carried across
the EU, the United States, and Africa.

The Chairman and non-executive director of Bophelo, Ms. Louisa Mojela,
stated, “The acquisition of Bophelo by Halo Labs gives me great hope for
the future of Africa’s cannabis industry. I am glad to be working with
Halo’s executive team, too. Together we will strengthen Lesotho’s
position as the breadbasket for Europe, Australia, and other global
markets.” Ms. Mojela is among Africa’s most successful business
personalities and a prominent citizen of Lesotho. She has been
recognized by countless international organizations for her
contributions to business, women, and impoverished communities winning
an All Africa Business Leaders award by CNBC in 2016.

Halo’s acquisition of Bophelo will further solidify the Company’s
strategic vision in addition to exemplifying its support of social
responsibility initiatives. For example, the land leased by Bophelo is
held by a non-profit trust that benefits the community. 10% (ten
percent) of Bophelo’s pre-tax profits will go to this trust and be given
back to the people of Lesotho. Both Ms. Mojela and Mr. Sidhu are
like-minded about social impact and equity. Through support from the
trust, Ms. Mojela has founded and built a school on Bophelo’s premises
and Mr. Sidhu is personally donating computers for the school’s
students. Ms. Mojela commented, “The social benefits of our
public-private partnership are extremely important to me. Halo shares
that commitment and these values will differentiate us from our

Chairman of Halo Labs, G. Scott Paterson, summed up anticipated benefits
from the transaction, “The proposed acquisition of Bophelo is game
changing for Halo and important for the global cannabis economy. We are
enthusiastic about the Lesotho opportunity and operating a scale
cultivation and production facility for the international export of oil
and concentrates. We expect a lift both to revenue and profit and are
looking forward to delivering these financial results to our

Completion of the Transaction is subject to, among other things, the
negotiation and execution of a mutually agreeable definitive acquisition
agreement and related documents and the satisfaction or waiver of any
conditions precedent to the consummation of the Transaction (including
the receipt of any requisite regulatory and third-party approvals).


Halo is a cannabis extraction company that develops and manufactures
quality cannabis oils and concentrates, which are the fastest growing
segments in the cannabis industry. Halo is a global leader in cannabis
oil and concentrates and has expertise across as major cannabis
manufacturing processes, leveraging proprietary processes and products,
and has produced over 4.0M grams of oils and concentrates since
inception. The forward-thinking company is led by a strong management
team with deep industry knowledge and blue-chip experience. The Company
is currently operating in California and Oregon as well as Nevada with
our partner Just Quality and in Lesotho with the Bophelo strategic
partnership. With a consumer-centric focus, Halo will continue to market
innovative branded and private label products across multiple product


Bophelo Bioscience is based in the Kingdom of Lesotho, Southern Africa
and is the holder of one of a limited number of licenses issued in
Lesotho for the production of medicinal cannabis products. Situated in
proximity 70 kilometers to the capital city of Maseru, the Company’s
operating site is an ideal location with ample labor, free water, flat
land area, and low crime rates. The favorable high altitude, low
humidity climate provides clean and organic growing conditions within
the pristine mountainous region. With the motto “Sechaba se tlisa lerou”
(community brings wealth), Bophelo highlights the value of community and
empowerment of the Basotho people with a focus on the development of
women and youth.


Lesotho is the first African country to legalize the cultivation and
manufacturing of medicinal cannabis, becoming one of the most
sought-after locations for cannabis operations in the world. The country
has issued a limited number of licenses since legalization in 2016 and
has been exporting cannabis since early 2018.

For further information regarding Halo, see Halo’s disclosure documents
on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information and

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 may include, but is not limited to, statements regarding the
Transaction (including the terms thereof, the entering into of
definitive documentation and closing conditions), the receipt of
regulatory approvals, the distribution and sale of Halo and Bophelo and
the size and growth of the global and regional cannabis market generally.

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. 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.


Halo Labs
Investor Relations