Halo Announces Proposed Acquisition of Canmart Limited to Enter UK Medical Cannabis Market

VCBeat (WeChat ID: vcbeat) learned from foreign media that on December 24, U.S. cannabis extraction company Halo announced it had signed a binding letter of intent to acquire UK medical cannabis distributor Canmart Limited for $4.6 million, with the transaction to be paid in Halo’s common stock.

Canmart Limited, established in 2018 and headquartered in New Romney, United Kingdom, was one of the first companies founded in response to the legalization of medical cannabis in the UK. It primarily engages in the importation and local distribution of cannabis products within the European market. Canmart already holds a Wholesale Dealer’s License issued by the MHRA.

Halo aims to acquire assets and secure additional national licenses in Europe and other regions, enabling medical cannabis products cultivated at its Lesotho facility to enter these markets directly. This acquisition marks Halo’s first international transaction. Through Canmart, Halo intends to begin exporting medical cannabis to the United Kingdom in the second half of 2020, subject to regulatory approval, as part of its phased international export strategy.

Halo believes that its specific cannabis strains in the Lesotho cultivation region possess superior genetics from their native environment, enabling the production of high-quality, terpene-rich cannabis with high levels of THC and CBD.

Halo’s CEO and co-founder stated, “The UK is one of the largest cannabis markets in the world. Our goal is to become a major player in the UK cannabis market in the coming years. Given the quality and cost-effectiveness of our medical cannabis grown in Lesotho, the acquisition of Canmart will position us favorably to capitalize on the growing trend toward mainstream adoption of cannabis-based medicines in the UK, thereby driving business growth.”

Prohibition Partners, a leading research organization in the international cannabis market, points out that approximately 1.4 million people in the UK who use medical cannabis to treat chronic health conditions are currently purchasing it through unregulated channels. Although the UK is one of the world’s largest exporters of cannabis plants for medical and scientific research, it imports 100% of the medical cannabis used domestically.

David Dean, a director at Canmart, stated accordingly: “The combination of Halo and Canmart strategically leverages the significant potential of the UK’s medical cannabis market. Since the legalization of medical cannabis in 2018, the regulatory environment has become increasingly supportive. Driven by robust patient demand, regulators are increasingly focusing on establishing a properly regulated sales market. Benefiting from Halo’s high-quality medical cannabis and the substantial potential cost efficiencies achieved through cultivation in Lesotho, we are now well-positioned to dominate the UK medical cannabis market.”

Halo is a global cannabis extraction company founded in 2016 and headquartered on the U.S. West Coast. Dedicated to the development and production of high-quality cannabis oils and concentrates, it is one of the fastest-growing companies in the cannabis industry. As a global leader in cannabis oils and concentrates, Halo has produced over 4.5 million grams of these products since its inception. The company currently operates in California, Oregon, and Nevada, and maintains a 205-hectare Bophelo cultivation facility in Lesotho. Halo previously acquired the Dispensary Track platform to facilitate direct consumer engagement.

(Compiled by Yang Xiaohui)