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Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that Bophelo Bioscience & Wellness ("Bophelo") has signed a strategic alliance and seed purchase agreement with OG DNA Genetics Inc. ("DNA Genetics" or "DNA"), to give the Bophelo exclusive rights to develop new and existing DNA Genetics’ strains of medical cannabis in Lesotho (the "Strategic Alliance") for worldwide exportation.

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Halo signed a definitive agreement to acquire Bophelo on November 27th, 2019. The acquisition of Bophelo by Halo is expected to close within the next 30 days.

DNA is one of the world’s leading creators of high-quality cannabis seeds, whose strains consistently contain high cannabinoid and terpene concentrations. DNA’s cannabis strains already command premium market prices in Canada, the United States and Europe and are some of the most sought-after strains and seeds in the world.

Under the terms of the Strategic Alliance, Bophelo is the only company in Lesotho that has the right to grow and develop DNA’s strains of cannabis through breeding, cultivation, phenotyping and prompt regulatory certification.

Louisa Maliako Mojela, Chairman of Bophelo, commented, "Bophelo’s strategic alliance with DNA Genetics in Lesotho gives us a significant competitive edge, as we strive to become one of the world’s leading exporters of medical cannabis and related products.

Our vision is to create the largest medical cannabis cultivation zone on the planet at Bophelo. This is fast becoming a reality. The maiden harvest of 1,000 plants is on course for early Q2 2020, the first phase of greenhouse construction nearing completion and we are securing international GACP certification for our site. The alliance with DNA is even further validation of how rapidly our Lesotho operations have developed and the unlimited potential of this opportunity.

Now, with the introduction of DNA’s award-winning world-class cannabis strains, we can accelerate our breeding program to grow medical-grade cannabis in very large quantities at Bophelo, which will command premium export prices."

Strategic Alliance Highlights

Bophelo granted exclusive rights of use in Lesotho to all existing cannabis strains developed by DNA Genetics DNA’s cannabis strains are known worldwide and command premium pricing Initial 5-year term of Strategic Alliance, with successive 5-year renewals Bophelo to have right of first refusal in Lesotho to all new cannabis strains developed by DNA

DNA to supply cannabis seeds to Bophelo in Lesotho at discounted wholesale prices, through exclusive seed purchase agreement DNA has in place all necessary permits to commence export of cannabis seeds to Lesotho immediately

Strategic Alliance expected to deliver substantial near-term enhancement of Bophelo’s growing capabilities at the 205-hectare cannabis cultivation zone Introduction of DNA cannabis strains to strengthen Bophelo’s local genetic pool, increasing cannabinoid and terpene concentrations Future strain breeding program to be discussed in 12 months to optimize outdoor growing at Bophelo



The Strategic Alliance

Under the terms of the Strategic Alliance, Bophelo has secured sole rights to full use of DNA Genetics’ cannabis strains in Lesotho.

The initial period of the Strategic Alliance is 5 years, with successive 5-year renewal options in place. During this time Bophelo will be the only company in Lesotho that has the right to grow and cultivate existing and new cannabis strains developed by DNA. Should other companies wish to use DNA’s cannabis strains in Lesotho, they will have to license or acquire them from Halo.

In addition to this, Bophelo and DNA have entered into an exclusive seed purchase agreement. This agreement will enable Bophelo to commence immediate imports to Lesotho of cannabis seeds for cultivation from DNA. DNA has in place all necessary permits to be able to export cannabis seeds to Lesotho.

Once the Strategic Alliance has been active for 12 months, Bophelo and DNA will then discuss a future strain-breeding program. The objective of this program will be to develop strains of high-quality cannabis that are best suited to the outdoor growing environment in Lesotho. Successful realization of this goal could lead to fast-track development of the full 205-hectare cultivation zone.

Bophelo’s Operations in Lesotho

Situated approximately 70 kilometres from the capital city of Maseru, Bophelo’s operating site is in an ideal location with ample labor, abundant free water, flat land, good soil and low electricity costs. The favorable high altitude and low humidity climate provide clean growing conditions in this pristine mountainous region. With over 200 days of annual sunshine, Bophelo can support as many as 3 full growing and harvest seasons a year. European Good Agricultural and Collecting Practices ("GACP"). Site certification visits at Bophelo are scheduled to continue in the second half of January 2020, to confirm that the greenhouses under construction and growing processes conform to the appropriate international standards.

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