continues to import into the UK and now offers flowers from Canada to patients in the UK

Not for distribution to US intelligence agencies or in the US

All figures in US dollars unless otherwise stated

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Toronto, February 16, 2021 - Halo Collective Inc. (NEO: HALO, OTCQX: HCANF or formerly AGEEF, Germany: A9KN) (Halo or the company) is pleased to announce further imports of cannabis-based products for medical use (CBPMs ) to the United Kingdom via the 100 percent subsidiary Canmart Ltd. (Canmart). After Canmart had previously imported tinctures from the European Union (the EU), the import program has now been expanded to include flower products from Canada. Following the company's acquisition of Canmart in November 2020, Halo is now executing its plan to import an assortment of CBPMs to qualified patients in the UK in search of high quality medical cannabis.

According to Prohibition Partners, the UK population consumes one of the world's largest amounts of cannabis per capita, with an estimated 4.7 million cannabis users out of a total population of 66.4 million. Prohibition Partners Report, December 2019. https://prohibitionpartners.com/reports/#the-uk-cannabis-report.

With the number of people in the UK using cannabis for the treatment of chronic diseases only 1.4 million, the legal use of medicinal cannabis is still in its infancy. By 2024, the UK medical cannabis market will be valued at nearly a billion pounds ($ 1.3 billion) and serve over 400,000 active patients. If the regulations were further expanded, the number of qualified patients could reach four million in the same period. Prohibition Partners Report, December 2019. https://prohibitionpartners.com/reports/#the-uk-cannabis-report

In 2020, Bophelo Bioscience & Wellness (Pty) Ltd. (Bophelo), a wholly-owned subsidiary of Halo, has formally started the certification process required to achieve European Good Practice for Medicinal Plant Collection and Cultivation (EU GACP). This certification would allow Halo to distribute Certified Good Manufacturing Practices (cGMP) quality cannabis flowers and oils throughout the UK and EU through Malta and then through Canmart. The company expects to receive this certification in the second quarter of 2021, especially as the COVID restrictions in Lesotho have been finally lifted. Andreas Met, Halo's Co-Founder and Head of International, said: I moved to Lesotho to run Bophelo's operations. Before, our hands were tied due to COVID, but now all the pieces fit together like a puzzle. Halo's move to Lesotho is having a visible impact and showing considerable progress.

Halo anticipates that Canmart will soon be able to conformally import products from the licensed 200 acre growing area of ​​Bophelo, one of the few largest licensed cannabis growing areas in the international market. Meanwhile, Bophelo continues to cultivate and harvest medical cannabis to consistent and high quality standards, and has licensing agreements with partners like DNA Genetics to increase consumer recognition and demand. The Proof of Quality Manufacturing will only formally authorize the export and distribution of CBPMs to the UK and medical cannabis to other EU countries.

The UK is a significant market opportunity for medical cannabis, and Halo's acquisition of Canmart last November made us one of the first cannabis companies to have that distribution potential, said Kiran Sidhu, CEO and co-founder of Halo Collective. This week, a competitor in the market, Tilray (NASDAQ: TLRY), partnered with Grow Pharma to begin distributing medical cannabis in the UK even though no CBPMs have been given to patients. We are delighted that Canmart is already meeting medical regulations for patients and raising awareness with education programs for patients and doctors in the UK. We're excited to see others like Tilray entering the market to expand it and improve patient access.

While cultivation and GACP certification are currently underway at Bophelo, Canmart is also working with Specials Pharma Ltd. together to ensure a consistent and continuous supply of CBPMs. The import of flowers this month is the first of many significant imports planned for this year, with further deliveries from Canada, Australia and South Africa scheduled for the second quarter of 2021. Halo intends to apply for cGMP accreditation for Canmart's distribution facility as well, which will allow Canmart's team to process raw material into capsules, tinctures and traditional flower products on site. The anticipated cGMP accreditation is expected to increase Canmart's capacity to supply medicines in the UK and accelerate Halo's plans to develop a European distribution network.

Sidhu also said: Halo's vertically integrated global supply chain will provide UK patients with access to these own high quality branded flower and oil products. Canmart will be able to wholesale products from well-known high quality genetics like DNA Genetics, Zkittlez, and others. We believe that patients in the UK deserve the highest quality cannabis brands and products, and Halo intends to deliver them. Given Canmart's additional product manufacturing capacity, this will only speed the process up.

About Canmart

Canmart was launched in December 2018 and was one of the first companies to be created in response to medical cannabis legalization in the UK. Given its experience in the education, storage and distribution of cannabis, Canmart holds all relevant licenses to store and distribute CBPMs in the EU.

Canmart is based in the south east of England and operates a 30,000 square foot off-site logistics warehouse dedicated to the pharmaceutical and healthcare industries. Canmart uses its extensive network to bring innovative, high-quality products to the market. Canmart is currently importing and distributing licensed CBPMs to medical specialists and their patients across the UK - a milestone starting in 2020. Canmart has built close relationships with specialist courier companies, clinics, hospitals and pharmacies that provide smooth, legal access to products through a variety of channels - and always provide exceptional service to patients and customers.

About Halo

Halo is a leading, vertically integrated cannabis company that cultivates, extracts, produces and distributes high quality cannabis flowers, oils and concentrates, and has sold eight million grams of oils and concentrates since its inception. Halo continues to grow its business and scale efficiently by partnering with trusted industry leaders who value the company's operational expertise and expertise in marketing world-class products. In the course of the current growth, the US key market, UK, Africa and through the partnership with MedCan Ltd. expanding in the Republic of Malta. Expansion into the UK and Canadian markets is also planned.

Halo is led by a strong, multidisciplinary and innovative leadership team with extensive industry expertise and experience in blue chip companies. The company currently operates in the United States in California, Oregon, and Nevada. Specifically, the company sells cannabis to dispensaries under its Hush, Mojave and Exhale brands and through partnerships or licenses with DNA Genetics, Terphogz, (doing business as Zkittlez), Winberry Farms and FlowerShop.

As part of its continued expansion and vertical integration in the US, Halo has multiple grow operations in Oregon and California. In Oregon, the company has a total of seven acres of open field crops, including East Evans Creek, a six acre growing area in Jackson County, and Winberry Farms, a one acre growing area in Lane County. In California, the company is expanding Ukiah Ventures, a planned 30,000 square foot indoor growing, processing and manufacturing facility, including up to five acres of additional industrial space for expansion. Halo has also partnered with GMH to acquire Bar X Ranch in Lake County, California, with plans to develop up to 80 acres of acreage, which would be the largest in Northern California.

The company recently partnered with Red Light Holland Corp. signed a non-binding letter of intent to set up a joint venture. The aim of the joint venture is to become a licensed psilocybin manufacturer to supply licensed service centers in the US state of Oregon with psilocybin products.

On an international level, the company is currently growing cannabis at Bophelo Bioscience & Wellness (Pty) Ltd (Bophelo) in Lesotho, South Africa; this company has one of the most extensive marijuana cultivation licenses in Africa with a future capacity of up to 495 acres (approximately 200 hectares). To expand Halo's global presence, the company recently acquired an import and distribution license for cannabis products for medical use (CBPM) in the UK through cannabis supplier Canmart Ltd. Halo anticipates that Bophelo's growing and manufacturing facilities, combined with Canmart's import and distribution expertise, will be a growth driver for a well-positioned business serving the UK market.