Halo Collective Inc. announced that it is strategically expanding into the functional beverage market with a proposed stock-based acquisition of private company operating as H2C Beverages ("H2C") and the entering into of a distribution and manufacturing agreement (the "Distribution Agreement") with Elegance Brands Inc. ("Elegance"). Pursuant to the terms of the Distribution Agreement, Elegance has agreed to purchase $30 million of Halo's H2C and Hushrooms™ branded products during the 24-month period following the launch of the products (the "Launch Period") and to distribute these products to retail outlets in respective legal states across the United States.