Africa Archives - Green Market Report

Debra BorchardtDebra BorchardtJanuary 16, 2020
Three-Boxes-in-Row-With-_Chocolates-scaled.jpg

5min11620

Halo Labs Inc. (NEO: HALO)(OTCQX: AGEEF) has exercised its Mendo Distribution and Transportation’s (MDT) option to purchase Outer Galactic Chocolates, which is a holder of a Type N manufacturing license. MDT was recently acquired by Halo through a merger on January 9, 2020.

Kiran Sidhu, Halo CEO and Co-Founder said, “Obtaining a Type N manufacturing license in California for the production of infused and edible products is a step in diversifying Halo’s product offering in this growth category. Not only are we building new lines around award-winning expertise in OGC, we will support expanded distribution of OGC-branded chocolates to Southern California.”

The acquisition will give Halo a license to produce infused and edible cannabis products adjacent to the MDT facility in Ukiah, California. A Type N license permits manufacturers to conduct most activities including packaging and labeling, however, it does not allow for extraction. For extraction in California, Halo utilizes its Type 7 licensed facility in Cathedral City, California.

In addition to obtaining the Type N license in California, Halo said it plans to execute a management agreement with the current management of OGC to aid in the transition and buildout of the business, which will include the introduction of both Halo-branded and other white label infused products. A strategic partnership with existing management will provide a strong base for the development of new edible cannabis products in California under the Hush® brand through channels and clientele already established by OGC.

Eaze

Earlier this week the company also stated that it was expanding its offering on the leading online cannabis marketplace Eaze, to include the Hush product line. Halo already successfully sells its premium GILT branded DabTabs on Eaze and will now introduce the Hush line of vape cartridges, shatter, concentrate, edibles and tinctures. The Hush brand is synonymous with high-quality cannabis products at an affordable price and is now available for delivery throughout California and Oregon. Following this second rollout of products on Eaze, Halo said expects to release more product lines on the marketplace in the future.

Eaze Director of Brand Development Owen Ruh said, “In concept and execution Halo has proven to be an innovative and dependable partner to Eaze, with products that are very popular with our customers. It’s a great time to expand the relationship and we’re excited to see what it brings.

Africa

The company also said that Bophelo Bioscience & Wellness has started the certification process required to achieve European Good Agricultural and Collection Practices accreditation for cannabis grown at the Company’s 205-hectare cultivation site at Bophelo in Lesotho, Africa.

Obtaining EU GACP certification would allow Halo to export medicinal cannabis and Cannabis-Based Products for Medicinal use to the United Kingdom as well as countries in the European Union. According to Prohibition Partners, the CBPM market in the UK is comprised of 1.4 million consumers who use CBPMs for health treatments with an additional 4.7 million recreational cannabis users. This translate to a medical cannabis market that is predicted to be worth roughly $1.3 billion by 2024.

To achieve EU GACP accreditation, Halo said it has engaged Pharmaconsulta Limited, an independent firm based out of Malta in Europe, that specializes in pharmaceutical regulatory affairs.

Sidhu added, “We are extremely pleased at the speed at which we are realizing our strategic vision for Bophelo. By the time the maiden harvest is complete the facility is expected to be fully certified and ready to export legal cannabis. International exportation is currently an untapped opportunity for Halo and will add sizeable, incremental topline revenue. We also look forward to delivering innovative strains with the DNA genetics partnership to future harvests. With three grow seasons a year anticipated at Bophelo, we expect to establish ourselves quickly as one of the leading suppliers of consistently high-quality cannabis to regulated international markets.”


William SumnerWilliam SumnerMay 30, 2018
canopy3-1280x854.jpg

4min13110

Canopy Growth Corporation (WEED) is staking a claim in the African medical cannabis market. On May 30, 2018, the company announced that it has acquired Daddy Cann Lesotho PTY Ltd., which trades under the name Highlands.

“We’re excited to join the Canopy Growth family and bring together our strong entrepreneurial experience and local knowledge in the region with Canopy Growth’s track record and quality standards in the global medical cannabis industry,” said Highlands founder Jody Aufrichtig. “Lesotho and Southern Africa have enormous potential and we look forward to building a responsible medical cannabis business across the region.”

Highlands is located in the Kingdom of Lesotho, which recently legalized medical cannabis in 2017. Geographically surrounded by South Africa, Lesotho is part of what is known as the “Dagga Belt,” which is a region known for its prolific cannabis production. Dagga is a term used in South Africa for cannabis. Under the agreement, Canopy will issue a total of 999,643 shares of the company to Highlands’ sole shareholder, at a price of approximately $28.76 per share. The sum value of the deal is estimated to be approximately $28.8 million.

Licensed for the production, manufacturing, import, and export of medical cannabis; Canopy hopes to use Highlands to gain a strategic foothold on the African continent. This strategy is in line with a recent analysis by BMO Capital Markets, which found that Canopy was strategically positioned itself in the global market by setting up operations in international”hub regions”, like Denmark or Lesotho,  with the anticipation that larger markets would soon open up.

According to a United Nations report, approximately 25% of the world’s cannabis is produced in Africa, with roughly 42% of all of the cannabis grown in Africa coming from the South African region. Approximately 38.2 million Africans, or 7.7% of the adult population, use cannabis on a daily basis.

Although Zimbabwe is the only other African nation to legalize medical cannabis, the legalization has made some progress over the last several years. Most recently, South African’s Western Cape High Court ruled that banning personal cannabis use and cultivation is unconstitutional, effectively decriminalizing cannabis in the region and paving the way for wider legalization.

Canopy is not the only cannabis company with interest in Africa. Only a handful of days before Canopy made its announcement, Aphria (APH) broke the news that it would form a joint venture with the Lesotho-based company Verve Group of Companies, dubbed CannInvest Africa Ltd.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 1 hour

We apologize for our slow reporting this week. We were affected by the storm that came through the Northeast and ar…

@GreenMarketRpt – 2 days

RT : Unlike other hemp-infused beverages that contain CBD, these products are made with hemp seed oil.

@GreenMarketRpt – 2 days

A cautionary tale for those selling unregistered securities. SEC Files Case Against Cannabis Investor Off…

Back to Top

You have Successfully Subscribed!