Halo Collective Inc. announced that it has entered into a strategic partnership and licensing arrangement with Elegance Brands, Inc. to expand its product-offering dispensaries to include THC-infused beverage products. As part of the Transaction, Elegance will exclusively license the intellectual property rights for its THC brands and provide support to Halo on operations and manufacturing technology for the manufacture and sale of certain THC-infused beverage products in exchange for a [2]% royalty on all sales generated from these brands (the "Licensing Agreement"). In addition to the Licensing Agreement, Halo will acquire manufacturing equipment custom-built for THC beverage production and acquire a minority interest in Elegance. The Licensing Agreement allows Halo to exclusively license Elegance's THC-infused beverage product portfolio, including Arvo, Zen, Life Brew, High Life THC Cocktails, Island THC & Coconut Water, Stoney Island THC Cold Brew Coffee, 420 Friendly THC Lemonades, and California THC Bitters. The first product expected to launch under the partnership is Zen THC Social Tonics in a range of four innovative flavors: Raspberry Hibiscus, Ginger Lime, Mango Habanero, and Citrus Lavender. They are expected to enter distribution by Q4, 2021 in California and Q1, 2022 in Oregon.