Halo Collective's wholly-owned subsidiary Bophelo Bioscience & Wellness has completed its first sale of cannabis flower to a licensed cannabis producer and exporter based in Lesotho, Africa. "The license-to-license market in Africa is estimated to be $7.1B USD by 2023 and Bophelo is uniquely positioned to capitalize by cultivating high quality flower at affordable prices for African patients," Biophelo team explains. "Given this newfound demand Bophelo has hired 30 additional employees over the last week, bringing total workers on site to approximately 130."
"The purchaser bought two lots of two different strains from the 2020/2021 growing season at a price of 30 RND (approximately $2.00 USD) per gram. Bophelo's cultivation cost is estimated to be less than 5 RND (approximately $.33 USD) per gram. External test results of this raw material at an independent certified ISO 170252 lab showed average total THC content of over 20%, which is high for African cannabis and allows Bophelo to compete with European growers at a substantially lower cost base."
The Halo management team is getting a clearer picture of the cannabis strains best suited for the pristine climate in Lesotho. "After close to 2 years of hunting for the most suitable strains with the most anticipated sales potential, the Company feels confident that it has cultivated cannabis on par with Oregon and California flower at affordable prices for both African and European patients," the team continues.
Bophelo has cloned a number of mother plants from all varieties grown this year to ensure it can produce cloned replicas of the most desirable strains, thereby putting the best into full production while remaining diligent with our ongoing strain hunting efforts.
Sales to African licensed distributors should enable Bophelo to enter African markets quickly, which could unlock additional revenue streams.
After installing a butane extraction unit, which is expected to be finished within the next 42 days, Halo believes Bophelo will be the only volatile licensed extraction company in Lesotho. This may enable contracted extraction of oils and concentrates for other licensed domestic cultivators in Lesotho, another potential new incremental revenue stream.
Andreas Met, Founder of Halo Collective and Head of International Operations, who is guiding the development of Bophelo on-site in Lesotho, states: "As Bophelo begin sales in Africa and soon in Europe, Halo believe that our sales from Bophelo could exceed our sales in California within months and Oregon within a year. This is another critical milestone for Halo and represents two new revenue streams for the Company, that Halo did not envision until we started to market and sell our products and services in Africa. This initial sale, with potential revenue of over six times Bophelo's estimated cultivation costs, leads Halo to believe that Bophelo can become profitable in 2021." He continues. "Step by step, we are now able to unlock the full potential, as a result of our growing space of up to 200 hectares and experience the Company has accumulated over the last four years in Oregon, California and Nevada."
For more information:
Halo Collective
info@halocanna.com
halocanna.com