Ms. Katie Field reports

HALO COLLECTIVE REPORTS Q2 2023 FINANCIAL RESULTS AND ANNOUNCES DELISTING

Halo Collective Inc. has released its financial results for the second quarter of 2023. Despite navigating a challenging market landscape, the company remains steadfast in its commitment to delivering quality products and adapting to changing industry dynamics.

Second Quarter 2023 Financial Highlights:

• The Company's revenues for the three months ended June 30, 2023, were $3,568,662, reflecting a 48.1% decrease compared to the same period in the previous year. This dip in revenues was attributed to an oversupply of cannabis in both Oregon and California markets, leading to downward pricing pressures.
• During this quarter, the Company sold a total of 1,377,052 grams, marking a 31.5% decrease from the previous year.
• Despite these challenges, Halo demonstrated its commitment to adaptability and operational efficiency. The company achieved a gross profit of $1,832,239 for the three months ended June 30, 2023, marking a 16.5% decrease from the previous year. However, the reported gross margin improved significantly to 51.3% from 31.9% the prior year.
• Operating expenditures in Q2 2023 were $3,326,734, showcasing a remarkable 67.4% decrease compared to Q2 2022.
• In regional breakdowns, Oregon generated $2,739,822 in revenue, marking a 27.1% decrease from the same period in 2022, reflecting market dynamics. Furthermore, the Company remains focused on optimizing its product portfolio and adapting to shifting consumer preferences. The launch of Halo PDX, a new distribution company in Oregon, in January 2022 signifies the Company's commitment to enhancing its market presence and expanding its offerings.
• The California wholesale business generated $471,986 in revenue for Q2 2023, experiencing a 77.7% decrease from the previous year. The Budega North Hollywood Dispensary reported $139,894 in revenue for Q2 2023, down by 51.6% compared to the same period in 2022, while Budega Westwood Dispensary demonstrated notable growth, generating $216,960 in revenue for Q2 2023, a substantial increase of 1274.0% from its opening in May 2022.
• The Company's adjusted EBITDA for Q2 2023, accounting for non-cash items, recorded a loss of $4,546,367, reflecting the Company's dedication to managing operational costs.
• In Q2 2023, the Company raised no funds through debt financing. The total capital used, net of a $460,663 reduction in lease obligations, was $460,663. Cash outflow amounted to $432,014, reflecting a strategic approach to cash management.
• As of June 30, 2023, the Company maintained a diligent financial approach, with no unrestricted cash available.

Delisting Announcement

The Company also reports that its securities have been delisted from the CBOE Exchange effective as of the close of markets August 14, 2023.

About Halo Collective

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, pre-rolls, vape carts, edibles, and concentrates. Halo sells these products under a portfolio of brands, including Hush(TM), Winberry Farms(TM), its retail brand Budega(TM), and license agreements with FlowerShop*. In addition, Halo has opened two dispensaries in Los Angeles under the Budega(TM) brand in North Hollywood and Hollywood, with plans to open one more in Hollywood in 2023.

In the non-THC sector, Halo is expanding into health and wellness categories, including CBD 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(TM)), and topical supplements (Hatshe) with proposed national distribution via a strategic agreement with SWAYEnergy Corporation.

Halo has successfully acquired and integrated a variety of companies which were subsequently reorganized to create Akanda Corp. (NASDAQ: AKAN), an international medical cannabis and wellness company, of which Halo is the largest shareholder. Halo has also acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab. Halo intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc. and to complete the distribution of the shares of Halo Tek Inc. to shareholders on record at a date to be determined.

We seek Safe Harbor.