Ms. Katie Field reports

HALO COLLECTIVE ANNOUNCES CHANGE OF AUDITORS AND FAILURE TO FILE CEASE TRADE ORDER

Halo Collective Inc. has changed its auditor from Macias Gini & O'Connell LLP (the former auditor) to GreenGrowth CPAs (the successor auditor). The former auditor resigned effective June 19, 2023, and the company's board of directors, upon the audit committee's recommendation, appointed the successor auditor to fill the resulting vacancy until the close of the next annual meeting of the company's shareholders.

There was no modified opinion, or other opinion, issued by the former auditor in connection with its audit of the company for the period commencing at the beginning of the company's most recently completed financial year and ending on the date of former auditor's resignation. There are no reportable events (as the term is defined in National Instrument 51-102: Continuous Disclosure Obligations) between the company and the former auditor.

In accordance with NI 51-102, the company's notice of change of auditor, together with the required letters from the former auditor and the successor auditor, have been filed on SEDAR.

The company also announces that the Ontario Securities Commission (the OSC) on June 19, 2023. issued a failure-to-file cease trade order (FFCTO) against the company as a result of the company's failure to file the following:

• Audited financial statements, management discussion and analysis, annual information form, and related officer certifications for the year ended Dec. 31, 2022;
• Interim financial statements, management discussion and analysis, and related officer certifications for the interim period ended March 31, 2023.

As disclosed in the company's press release dated April 3, 2023, the OSC had previously granted a management cease trade order (MCTO) pursuant to which all trading of the company's securities by the company's chief executive officer and chief financial officer was prohibited until the company's annual filings were filed as required pursuant to NI 51-102. Upon the issuance of the FFCTO, the OSC has concurrently ordered that the MCTO be revoked.

The FFCTO prohibits the trading by any person of any securities of the company in each jurisdiction in Canada in which the company is a reporting issuer, including trades in the company's securities made through the NEO Exchange, for as long as the FFCTO remains in effect. The FFCTO provides an exception for beneficial securityholders of the company who are not currently (and who were not as of June 19, 2023) insiders or control persons of the company and who sell securities of the company acquired before June 19, 2023, if both of the following criteria are met: (i) the sale is made through a foreign organized regulated market, as defined in Section 1.1 of the universal market integrity rules of the Investment Industry Regulatory Organization of Canada, and (ii) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation.

There is no assurance that the company will be able to remedy its filing default and have the FFCTO lifted in a timely manner or at all.

The company also confirms that there is no other material information concerning the affairs of the company that has not been generally disclosed as of the date of this press release.

About Halo Collective Inc.

Halo is focused on the United States West Coast, where it has vertically integrated operations covering the entire value chain from seed to sale. Halo cultivates, extracts, manufactures and distributes quality cannabis flower, prerolls, vape carts, edibles and concentrates. Halo sells these products under a portfolio of brands, including Hush, Winberry Farms, its retail brand Budega and licence agreements with FlowerShop. In addition, Halo has opened two dispensaries in Los Angeles under the Budega brand in North Hollywood and Hollywood, with plans to open one more in Hollywood in 2023.

In the non-tetrahydrocannabinol sector, Halo is expanding into health and wellness categories, including cannabidiol and functional supplements such as nootropic nutraceuticals and non-psychotropic mushrooms. Halo, through a series of acquisitions, has product offerings in the form of beverages (H2C Beverages), dissolvable strips (Dissolve Medical), capsules (Hushrooms) and topical supplements (Hatshe) with proposed national distribution through a strategic agreement with SwayEnergy Corp.

We seek Safe Harbor.