Last month, Rich sat down with Kiran Sidhu, CEO of Halo Labs Inc. (OCTQX:AGEEF), a leading manufacturer of cannabis oil and concentrates. The day after that interview, AGEEF stock rocketed up nearly 25 percent. Now, Sidhu returns to RichTV Live to see if magic can happen a second time.
A serial entrepreneur and former M&A banker at Merrill Lynch, Sidhu was the founded the Transact Network and served as the CFO of On Stage Entertainment.
In 2016, he founded Halo Labs. Today, he and Rich discuss Halo’s recent developments in Lesotho, Africa, as well as the current and future state of the African cannabis market.
Lesotho is Positioned in a Massive, Untapped Cannabis Market
In Sidhu’s last interview with Rich, he called the small African nation of Lesotho “the best positioned place on the planet right now to grow cannabis cost-effectively, in a perfect climate, with a great regulatory environment.”
Halo Labs isn’t the only company that sees this potential in Lesotho. Since last year, when Lesotho became the first country in Africa to legalize medical marijuana, Canadian cannabis companies like Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) and Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) have been racing to establish themselves in the African kingdom.
Though mountainous, landlocked, and an enclave of South Africa, Lesotho offers a low-cost labor force and is close enough to Europe to make the transport of cannabis-derived products relatively simple. Also, Lesotho’s climate is considered ideal for growing cannabis. The country enjoys approximately 300 sunny days a year, is not too humid, and has highly fertile soil.
In addition, the government—a constitutional monarchy—is very welcoming of cannabis companies. Government representatives consider the industry a great way to reinvigorate the Lesothan economy.
Perhaps most interestingly, though, Lesotho is perfectly positioned to supply the growing African cannabis market, which has largely been looked over by cannabis companies. Analysts project the cannabis market in Africa to be worth as much as $7.1 billion USD by 2023.
Halo Labs Plans to Capitalize on “The Mountain Kingdom”
In July, Halo Labs agreed to buy Lesotho-based medicinal cannabis producer Bophelo Bioscience & Wellness. In the interview with Rich, Sidhu says that he expects to assume ownership of the company’s holdings in October or November, just in time for the summer season in southern Africa.
“We should have our first African crop come April,” he explains. “We are establishing licenses for our greenhouses and afterwards we want to go outdoors, up to 454 acres.”
Sidhu also discuses the news that he will be presenting at the 2019 MJBizCon International in Toronto. At the conference, he will further discuss his company’s plan to leverage its Lesothan properties to capture the African market.
In addition to Lesotho, Halo has established itself in Oregon, Nevada, and California. In May, the company announced that it had tripled its revenue to more than $8.7 million after launching cannabis oil and concentrate operations in the latter two states.
Rich notes that, at just over $0.30, Halo Labs remains at a very good price point for buyers.
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