On February 15, 2024, The Healing Company Inc. received a Notice of Default and Acceleration (the ? Notice?) relating to that certain Credit Agreement, dated as of August 4, 2022 (as amended, modified, supplemented or restated from time to time, the ? Credit Agreement?) by and among HLCO Borrower, LLC (the ?

Borrower?), the Company, the Borrower and the other Company related credit parties party to the Credit Agreement (Collectively, the ? Credit Parties?), the lenders which now or hereafter become a party thereto (collectively, the ? Lenders?), and Westmount Group LLC, as administrative agent for the Lenders (in such capacity, the ?

Administrative Agent?). The Administrative Agent had previously notified the Credit Parties in a notice transmitted on or about January 4, 2024, that one or more events of default under the Credit Agreement (? Events of Default?) were existing and continuing.

Such outstanding Events of Default include, among others, the following: The Credit Parties? failure to make two scheduled interest payments in the amounts of $91,454.13 each in respect of the monthly periods ending November 30, 2023 and December 31, 2023; The Notice indicated that, as a result of the outstanding Events of Default, which remained outstanding as of the date of the Notice, pursuant to Article 7 of the Credit Agreement, (a) the outstanding principal balance of all term loans, all interest and fees related thereto, and all other outstanding obligations are accelerated and declared immediately due and payable, and that the Administrative Agent demands immediate payment of all obligations; and (b) the commitments under the Credit Agreement are terminated as of the date of Notice and no further loans or other financial accommodations will be provided on or after the date of Notice. As of the date of the Notice, the aggregate outstanding obligations under the Credit Agreement were approximately $4,368,014.99 (comprised of (i) $4,160,887.68 in respect of outstanding principal, (ii) $185,282.65 of accrued and unpaid interest, (iii) $21,844.66 of unpaid default interest, and (iv) other, presently unliquidated, amounts for fees and expenses (including legal fees) payable in accordance with the Credit Agreement and related documents).

This outstanding amount does not include any additional obligations incurred following the date of the Notice (including additional interest, which shall continue to accrue on the outstanding obligations following the date of the Notice).