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.

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.”