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Financings

On September 18, 2019, the Company announced that it has entered into an unsecured debt financing agreement (the “Loan Agreement”) with a private arm’s length lender for a principal amount of up to C$10.0 million. The agreement is for an initial twelve-month term with interest accruing at a rate of 9% per annum.

October 11, 2019 the Company announced that it has closed the previously announced non-brokered private placement of Halo common shares at a price of C$0.31 per share for aggregate gross proceeds of C$3.0 million.

On October 16, 2019, the Company announced that it closed a second tranche of the previously announced non-brokered private placement of Halo common shares at a price of C$0.31 per share for additional gross proceeds of approximately C$965k. The Company anticipates closing a final tranche for aggregate gross proceeds of up to C$1.0 million.

Issuance of Additional Common Shares

The Company has issued an aggregate of 10,440,320 common shares (the “Compensation Shares”) to certain directors, employees and independent contractors of the Company in lieu of cash consideration. The Company issued the Compensation Shares in two tranches. The first tranche of 3,997,648 Compensation Shares was issued on October 15, 2019 at a price of C$0.30 per share and in satisfaction of C$1,199,295 of payables owed by the Company. An aggregate of 3,832,167 of the Compensation Shares issued in the first tranche were subject to a hold period of four months plus one day from the date of issuance. The second tranche of 6,442,672 Compensation Shares was issued on November 13, 2019 at a price of C$0.26 per share and in satisfaction of C$1,675,096 of payables owed by the Company. An aggregate of 6,333,088 of the Compensation Shares issued in the second tranche are subject to a hold period of four months plus one day from the date of issuance. An aggregate of 275,065 of the Compensation Shares were issued to related parties (within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”)) of the Company at an average price of C$0.28 and in satisfaction of C$78,137 of payables owed by the Company.