Document:

Exhibit 4.2

 

Certain portions of this exhibit have been redacted
in accordance with Item 601(a)(6) of Regulation S-K. This information is not material and disclosure of such information would constitute
an unwarranted invasion of personal privacy. “[*]” indicates that information has been redacted.

 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION,
THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR (4) MONTHS AND ONE (1) DAY AFTER THE LATER OF: (I)
November 3, 2021 AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

 

AKANDA CORP.

 

SECURED CONVERTIBLE DEBENTURE

 

	CONVERTIBLE DEBENTURE
 CERTIFICATE NUMBER: CD-2021-10	 	PRINCIPAL AMOUNT: $6,559,294 (USD)

 

AKANDA CORP., a corporation incorporated
under the laws of the Province of Ontario (the “Borrower”), for value received, hereby acknowledges itself indebted
and promises to pay to or to the order of HALO COLLECTIVE INC. (hereinafter referred to as the “Lender” or the “Debentureholder”),
the principal amount of $6,559,294 (the “Principal Amount”) in lawful money of the United States of America in the
manner hereinafter provided at the foregoing address of the Lender, or at such other place or places as the Lender may designate by notice
in writing to the Borrower, on November 2, 2022, or such other date as the Principal Amount may become due and payable (the “Maturity
Date”) or upon a Triggering Event (as defined herein), and to pay interest to the Lender on the Principal Amount outstanding
from time to time owing hereunder to the date of payment as hereinafter provided, both before and after maturity or demand, default and
judgment.

 

Subject to automatic conversion upon the occurrence
of a Triggering Event, the Borrower has the right, from time to time and at any time prior to 5:00 p.m. (Eastern Standard Time) on the
Business Day (as defined herein) immediately preceding the Maturity Date at a price, with respect to the Principal Amount, equal to the
Conversion Price (as defined herein), subject to adjustment in certain events, together with any accrued and unpaid interest owing thereon
to the date of conversion, to convert such amount into Common Shares.

 

Unless (i) the Borrower exercises the Conversion
Rights attached to this Debenture or (ii) a Triggering Event occurs, the Principal Amount owing, or the portion of the Principal Amount
which has yet to be converted, together with any accrued and unpaid interest owing thereon and all other amounts now or hereafter payable
hereunder (collectively, the “Obligations”) shall be due and payable on the Maturity Date in accordance with the terms
hereof. This Debenture is issued subject to the terms and conditions appended hereto as Schedule A. The Borrower may satisfy the Obligations
hereunder by converting, into Common Shares, all of the Principal Amount outstanding, subject to adjustment in certain events, together
with any accrued and unpaid interest owing thereon under this Debenture at the Conversion Price on the Maturity Date.

 

IN WITNESS WHEREOF, the Borrower has caused
this Debenture to be executed by a duly authorized officer.

 

DATED for reference this 3rd day of November,
2021.

 

    

    - 2 -

    

 

	 	
    AKANDA CORP.

	 	 
	 	Per:	/s/ Tejinder Virk
	 	 	Tej Virk, Chief Executive Officer
	 	 	 
	 	 	Acknowledged and Agreed to by:
	 	 	 
	 	 	HALO COLLECTIVE INC.
	 	 	 
	 	 	/s/ Kiran Sidhu
	 	 	Kiranjit Sidhu, Chief Executive Officer

 

(See terms and conditions attached hereto)

 

    

     

    

 

Schedule A –
Terms and Conditions for Secured Convertible Debenture

 

Article
1 – Interpretation

 

Section 1.1 Definitions

 

In this Debenture, the following
terms shall have the following meanings:

 

(1)               
“Affiliate”
means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common
control with such Person, including, without limitation, any partner, managing member, officer, director or trustee of such Person, or
any venture capital fund or investment fund now or hereafter existing that is controlled by one (1) or more general partners, managing
members investment adviser of, or shares the same management company or investment adviser with, such Person;

 

(2)               
“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial banks in Toronto, Ontario are authorized by law to close;

 

(3)               
“Canadian Securities
Laws” means the Securities Act (Ontario) and the securities laws of any
other province or territory of Canada, if applicable, and the rules, regulations and policies of any Canadian securities regulatory authority
administering such securities laws, as the same shall be in effect from time to time;

 

(4)               
“Change of Control”
means:

 

		(a)	any transaction (whether by purchase, Merger or otherwise) whereby a Person or Persons acting jointly
or in concert directly or indirectly acquires the right to cast, at a general meeting of shareholders of the Borrower, more than 50% of
the votes attached to the issued and outstanding Common Shares that may be ordinarily cast at a general meeting;

 

		(b)	the Borrower’s amalgamation, consolidation or Merger with or into any other Person, any Merger of
another Person into the Borrower, unless the holders of voting securities of the Borrower immediately prior to such amalgamation, consolidation
or Merger hold securities representing 50% or more of the voting control or direction in the Borrower or the successor entity upon completion
of the amalgamation, consolidation or Merger; or

 

		(c)	any conveyance, transfer, sale lease or other disposition of all or substantially all of the Borrower’s
and the Borrower’s subsidiaries’ assets and properties, taken as a whole, to another arm’s length Person;

 

(5)               
“Common Shares”
means the common shares in the capital of the Borrower or the common shares of the continuing corporation or other resulting issuer formed
as a result of a Merger;

 

(6)               
“Conversion Price”
means, subject to adjustment in certain events or the requirements of any applicable securities law or Exchange, the Current Market Price
at the time of a Triggering Event (currently expected to be $5.00) or if no Triggering Event occurs then the price of the last private
placement of the Borrower where it raises more than $1,000,000 USD prior to the conversion by the Borrower;

 

(7)               
“Conversion Right”
means the right attached to this Debenture which permits the Borrower to convert the Principal Amount outstanding under this Debenture,
or any portion thereof, into Common Shares in accordance with the provisions of Article 4;

 

(8)               
“Current Market Price”
has the meaning attributed thereto in Section 4.3(2);

 

(9)               
“Debenture”
means this secured convertible debenture;

 

(10)            
“Event of Default”
has the meaning attributed thereto in Section 8.1;

 

    -A 1-

    

    

 

(11)            
 “Exchange”
means the NYSE, NASDAQ, the Canadian Securities Exchange, the NEO Exchange, the TSX, the TSX Venture Exchange or if the Common Shares
are not listed on either of those exchanges, then such other stock exchange on which the Common Shares are listed and where a majority
of the trading volume occurs;

 

(12)            
“Free Trading Securities” means securities that are not subject to any restrictions on trading (other than in
respect of resales by control persons or any escrow requirements of an applicable stock exchange);

 

(13)            
“Issue Date” has the meaning attributed thereto in Section 4.2;

 

(14)            
“Lien”
means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title
of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement
or capital lease, upon or with respect to any property of such Person;

 

(15)            
“Lock Up Trigger Date”
has the meaning attributed thereto in Section 4.1;

 

(16)            
“Maturity Date”
means November 2, 2022;

 

(17)            
“Merger”
means any transaction (whether by way of consolidation, amalgamation, merger, transfer, sale or lease) whereby all or substantially all
of the Borrower’s assets would become the property of any other Person, or, in the case of any such consolidation, amalgamation
or merger, of the continuing corporation or other entity resulting therefrom;

 

(18)            
“Non-Control Covenant”
has the meaning attributed thereto in Section 7.2(2); 

 

(19)            
“Person”
means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government
or agency or political subdivision thereof;

 

(20)            
“Secured Debt”
means, with respect to any Person, any obligation of such Person for borrowed money that is secured in any manner by any Lien on any real
or personal property of such Person;

 

(21)            
 “Subsidiary”
means any Person, any corporation or other business entity in which such Person or one or more of its Subsidiaries owns, directly or indirectly,
sufficient equity or voting interests to enable it or them (as a group) to elect a majority of the directors (or Persons performing similar
functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned
by such Person or one or more of its Subsidiaries;

 

(22)            
“Taxes”
means any present or future income and other taxes, levies, rates, royalties, deductions, withholdings, assessments, fees, dues, duties,
imposts and other charges of any nature whatsoever, together with any interest and penalties, additions to tax and other additional amounts,
levied, assessed or imposed by any governmental authority;

 

(23)            
“Trading Day” means
a day on which the Exchange is open for trading (or if the Common Shares are not then listed on the Exchange, such other recognized stock
exchange or quotation system on which the Common Shares may trade or be quoted);

 

    -A 2-

    

    

 

(24)            
“Triggering Event”
means the occurrence of any of the following that may occur during the Triggering Event Period:

  

	 	(a)	an initial public offering of the Borrower’s securities or the qualification of a non-offering prospectus by the Borrower
resulting, in either case, in the Borrower’s securities being listed for trading on a stock exchange and the Borrower becoming a
 “reporting issuer” (as that term or its equivalent is defined in applicable securities legislation) in any jurisdiction of
Canada (or the equivalent in any other jurisdiction including the United States);
	 	 	 
		(b)	an amalgamation, arrangement, Merger, reverse takeover, reorganization or other similar transaction of
the Borrower with or into any other person (provided that the other person is not an affiliate of the Borrower) whereby all of the issued
and outstanding Common Shares are sold, transferred or exchanged for securities that are not subject to any restrictions on trading (other
than in respect of resales by control persons or any escrow requirements of an applicable stock exchange) (the “Free Trading
Securities”), or which results in all of the Common Shares (or the securities of a successor issuer) being listed on a stock
exchange and not being not subject to any restricted period or hold period under applicable securities laws in Canada or any other jurisdiction
(other than in respect of resales by control persons or any escrow requirements of an applicable stock exchange);

 

		(c)	a sale or conveyance of all or substantially all of the property and assets of the Borrower to any arm’s
length third party for consideration consisting of Free Trading Securities and the subsequent distribution of all of such consideration
to all of the holders of Common Shares, on a pro rata basis;

 

		(d)	the sale or exchange of all or substantially all of shares of the Borrower for Free Trading Securities;
or
	 	 	 
	 	(e)	any combination of the events or circumstances described in subsections (a), (b), (c) or (d) above, such that all of the Common
Shares shall be subject to one or more of (a), (b), (c) or (d) above. However, a Triggering Event conversion may only occur with respect
to such number of Common Shares that would result in the Lender owing less than 50% of the issued and outstanding Common Shares; and

 

    -A 3-

    

    

 

(25)            
“Triggering Event Period” means six (6) months from the date hereof.

 

Section 1.2 Headings

 

The inclusion of headings
in this Debenture is for convenience of reference only and shall not affect the construction or interpretation hereof.

 

Section 1.3 Currency

 

Unless otherwise indicated,
all amounts in this Debenture are stated and shall be paid in the currency of the United States of America.

 

Section 1.4 Number, Gender
and Persons

 

Unless the context otherwise
requires, words importing the singular in number only shall include the plural and vice versa, words importing the use of gender shall
include the masculine, feminine and neuter genders and words importing Persons shall include individuals, corporations, partnerships,
associations, trusts, unincorporated organizations, governmental bodies and other legal or business entities.

 

Section 1.5 Severability

 

If any provision of this Debenture
is determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such determination shall not
impair or affect the validity, legality or enforceability of the remaining provisions hereof, and each such provision shall be interpreted
in such a manner as to render them valid, legal and enforceable to the greatest extent permitted by applicable law. Each provision of
this Debenture is declared to be separate, severable and distinct.

 

Section 1.6 Entire Agreement

 

This Debenture, including
any schedules attached hereto, constitutes the entire agreement between the Borrower and the Lender relating to the subject matter hereof,
and supersedes all prior agreements, representations, warranties, statements, promises, information, arrangements, understandings, conditions
or collateral agreements, whether oral or written, express or implied, with respect to the subject matter hereof.

 

    -A 4-

    

    

 

Article
2  – Payment of Principal, Interest AND OTHER CONSIDERATIONS

 

Section 2.1 Repayment of
Principal

 

Subject to the terms and conditions
hereof, the Principal Amount outstanding on this Debenture, together with any accrued and unpaid interest owing thereon shall be repaid
by the Borrower to the Lender on the Maturity Date. Subject to applicable regulatory approval, the Borrower shall satisfy its obligation
to repay the Principal Amount outstanding under the Debenture upon a Triggering Event during the Triggering Event Period or at the election
of Lender subsequent to the Triggering Event Period by issuing fully paid and non-assessable Common Shares at the Conversion Price.

 

Section 2.2 Interest Payable

 

Interest on the Principal
Amount outstanding under this Debenture shall be at the rate of 1.00% per annum, calculated on a compounding basis, accrued and paid at
the earlier of the Issue Date upon a Triggering Event or the Maturity Date. The Borrower shall satisfy its obligation to repay interest
on the Principal Amount by issuing fully paid and non-assessable Common Shares at the applicable Conversion Price.

 

Section 2.3 Rank

 

This Debenture will constitute
direct secured obligations of the Borrower. There is no other debt that ranks ahead of this Debenture without the express written consent
of the Lender.

 

Article
3 – Purchase

 

Section 3.1 Purchases for
Cancellation

 

The Borrower will have the
right at any time and from time to time to purchase the Debentures and any accrued interest without any prepayment penalty.

 

Article
4 – Conversion

 

Section 4.1 Conversion
Right

 

(1)               
Upon and subject to the terms and conditions hereinafter set forth (including, but not limited to, automatic conversion in the
event of a Triggering Event as described in Section 4.1(3) below) and subject to the requirements of any applicable securities law or
Exchange, the Borrower shall have the right (the “Conversion Right”), but not the obligation, at any time, and from
time to time, up to and including the Business Day immediately preceding the Maturity Date to notify the Lender that it wishes to exchange
or convert, for no additional consideration, all or any part of the Principal Amount of this Debenture (the “Converted Debenture
Amount”) into Common Shares at the Conversion Price in effect on the Issue Date. If the Borrower is electing to convert all
or a portion of the Principal Amount, then the applicable amount of accrued and unpaid interest on the Principal Amount being converted
must be paid by the Borrower up to, but excluding, the applicable date of conversion in accordance with Section 2.2. A conversion of principal
and interest hereunder into Common Shares may only occur in such amount as to ensure that the Lender does not own more than 50% of the
issued and outstanding Common Shares.

 

    -A 5-

    

    

 

(2)               
The Conversion Right shall extend only to the maximum number of whole Common Shares into which the Principal Amount of this Debenture
or any part thereof may be converted in accordance with this Section 4.1. Fractional interests in Common Shares shall be adjusted in the
manner provided in Section 4.4.

 

(3)               
Upon the occurrence of a Triggering Event that occurs prior to the end of the Triggering Event Period, the Principal Amount of
this Debenture plus unpaid and accrued interest shall be converted into Common Shares at a price equal the Conversion Price

 

(4)                The
Lender agrees hereby not to, and agrees to execute and deliver a lock-up agreement restricting its right to, (a) offer, pledge,
sell, contract to sell, sell any options or contract to purchase, purchase any option or contract to sell, grant any option, right
or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any securities of the Borrower, or (b) enter
into any swap or other arrangement or any transaction that transfers, in whole or in part, directly or indirectly, to another any of
the economic consequences of ownership of such securities during the period of 270 days from the date on which the trading of the
Common Shares on the Nasdaq Stock Exchange commences (the “Lock-Up Trigger Date”), in each case, excluding
transfers pursuant to any carve-outs in the applicable lock-up agreement. The terms of such lock-up agreement shall be negotiated
among the Lender, the Borrower and the Boustead Securities, LLC and shall include customary carve-outs from the restrictions on
transfer set forth therein and shall permit that up to 50% of such securities may be transferred or sold from the 271st
day through the 365th day following the Lock-Up Trigger Date; the remaining 50% of such securities will be entitled to be
transferred without such lock-up restrictions beginning on the 366th day following the Lock-Up Trigger Date. Any such
transfers remain subject to rules of the Securities and Exchange Commission applicable to securities of the Borrower held by
Affiliates, provided that the Borrower agrees to cooperate with the Lender to facilitate the transfer of such securities by Lender
following the expiration of the lock-up restrictions as set forth herein, including with respect to the removal of restrictive
legends from such securities applicable to Affiliates, if Lender furnishes to the Borrower an opinion of counsel reasonably
satisfactory to the Borrower that Lender is not an “affiliate” of the Borrower under the Securities Act of 1933.
Notwithstanding the foregoing, nothing in this Section 4.1(4) shall prohibit the sale or transfer by the Lender of such number of
Common Shares held by the Lender as is required in order for the Lender to comply with its covenants set forth in Section 7.2.

 

Section 4.2 Conversion
Procedure

 

The Conversion Right may be
exercised by the Borrower by completing and signing the notice of conversion (the “Conversion Notice”) attached hereto
as Schedule B, and delivering the Conversion Notice and this Debenture to the Lender. The Conversion Notice shall provide that the Conversion
Right is being exercised, shall specify the Converted Debenture Amount and shall set out the date (the “Issue Date”)
on which Common Shares are to be issued upon the exercise of the Conversion Right (such date to be no earlier than five (5) Business Days
and no later than ten (10) Business Days after the day on which the Conversion Notice is issued, subject in each case to applicable securities
law, including Canadian Securities Laws or the requirements of any Exchange.
The conversion shall be deemed to have been affected immediately prior to the close of business on the Issue Date and the Common Shares
issuable upon conversion shall be deemed to be issued as fully paid and non-assessable at such time. Within ten (10) Business Days after
the Issue Date, a certificate for the required number of Common Shares shall be issued to the Lender. If less than all of the Principal
Amount of this Debenture is the subject of the Conversion Right, then within ten (10) Business Days after the Issue Date, the Borrower
shall deliver to the Lender a replacement Debenture in the form hereof in the Principal Amount of the unconverted principal balance hereof,
and this Debenture shall be cancelled. If the Conversion Right is being exercised in respect of the entire Principal Amount of this Debenture,
this Debenture shall be cancelled. With the Conversion Notice, the Lender shall provide the Borrower with its written calculation of the
amount of accrued and unpaid interest on the Principal Amount which is the subject of the Conversion Right pursuant to the Conversion
Notice, up to the date of that Conversion Notice and a per diem amount thereon.

 

    -A 6-

    

    

 

Section 4.3 Adjustment
of Conversion Price

 

The Conversion Price in effect
at any date shall be subject to adjustment from time to time as follows:

 

(1)               
If and whenever at any time prior to the Maturity Date, the Borrower shall:

 

		(a)	subdivide or re-divide the outstanding Common Shares into a greater number of Common Shares;

 

		(b)	reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common Shares;

 

		(c)	issue Common Shares (or securities convertible into or exchangeable for Common Shares) to the holders
of all or substantially all of the outstanding Common Shares by way of stock dividend; or

 

		(d)	make a distribution on its outstanding Common Shares payable in Common Shares or securities exchangeable
for or convertible into Common Shares,

 

the Conversion Price in effect on the
effective date of such subdivision, redivision, reduction, combination or consolidation or on the record date for such issue of
Common Shares (or securities convertible into or exchangeable for Common Shares) by way of a stock dividend or other distribution,
as the case may be, shall, in the case of the events referred to in Sections 4.3(1)(a), (c) and (d) above, be decreased in
proportion to the increase in the number of outstanding Common Shares resulting from such subdivision, redivision or dividend
(including, in the case where securities convertible into or exchangeable for Common Shares are issued, the number of Common Shares
that would have been outstanding had such securities been converted into or exchanged for Common Shares on such effective or record
date) or shall, in the case of the events referred to in Section 4.3(1)(b) above, be increased in proportion to the decrease in the
number of outstanding Common Shares resulting from such reduction, combination or consolidation on such effective or record date.
Such adjustment shall be made successively whenever any event referred to in this Section 4.3(1) shall occur. Any such issue of
Common Shares (or securities convertible into or exchangeable for Common Shares) by way of a stock dividend or other distribution
shall be deemed to have been made on the record date for the stock dividend or other distribution for the purpose of calculating the
number of outstanding Common Shares under Sections 4.3(2) and (3); to the extent that any such securities are not converted
into or exchanged for Common Shares prior to the expiration of the conversion or exchange right, the Conversion Price shall be
readjusted effective as at the date of such expiration to the Conversion Price which would then be in effect based upon the number
of Common Shares actually issued on the exercise of such conversion or exchange right.

 

(2)               
If and whenever at any time prior to the Maturity Date, the Borrower shall fix a record date for the issuance of rights, options
or warrants to all or substantially all the holders of its outstanding Common Shares entitling them, for a period expiring not more than
forty-five (45) days after such date of issue (such period from the record date to the date of expiry being referred to in this Section
4.3(2) as the “Rights Period”), to subscribe for or purchase Common Shares (or securities convertible into or exchangeable
for Common Shares) (such subscription price per Common Share (inclusive of any cost of acquisition of securities exchangeable for or convertible
into Common Shares in addition to any direct cost of Common Shares) being referred to in this Section 4.3(2) as the “Per Share
Cost”), the Borrower shall give written notice to the Lender with respect thereto (any of such events herein referred to as
a “Rights Offering”), and the Lender shall have fifteen (15) days after receipt of such notice to elect to convert
any or all of the Principal Amount of this Debenture into Common Shares at the then applicable Conversion Price and otherwise on terms
and conditions set out in this Debenture. If the Lender elects to convert any or all of the Principal Amount of this Debenture, such conversion
shall occur immediately prior to the record date for the issuance of such rights, options or warrants. If the Lender elects not to convert
any of the Principal Amount of this Debenture, there shall continue to be an adjustment to the Conversion Price as a result of the issuance
of such rights, options or warrants, in the manner hereinafter provided. The Conversion Price will be adjusted effective immediately after
the end of the Rights Period to a price determined by multiplying the Conversion Price in effect immediately prior to the end of the Rights
Period by a fraction:

 

		(a)	the numerator of which is the aggregate of:

 

		(i)	the number of Common Shares outstanding as of the record date for the Rights Offering; and

 

		(ii)	the number determined by dividing the product of the Per Share Cost and:

 

		(A)	where the event giving rise to the application of this Section 4.3(2) was the issue of rights, options
or warrants to the holders of Common Shares under which such holders are entitled to subscribe for or purchase additional Common Shares,
the number of Common Shares so subscribed for or purchased during the Rights Period, or

 

    -A 7-

    

    

 

		(B)	where the event giving rise to the application of this Section 4.3(2) was the issue of rights, options
or warrants to the holders of Common Shares under which such holders are entitled to subscribe for or purchase securities exchangeable
for or convertible into Common Shares, the number of Common Shares for which those securities so subscribed for or purchased during the
Rights Period could have been exchanged or into which they could have been converted during the Rights Period,

 

by the Current Market Price (as hereinafter
defined) of the Common Shares as of the record date for the Rights Offering; and

 

		(b)	the denominator of which is

 

		(i)	in the case described in subparagraph 4.3(2)(a)(ii)(A), the number of Common Shares outstanding,
or

 

		(ii)	in the case described in subparagraph 4.3(2)(a)(ii)(B), the number of Common Shares that would be
outstanding if all the Common Shares described in subparagraph 4.3(2)(a)(ii)(B) had been issued,

 

as at the end of the Rights Period.

 

“Current Market Price” of the
Common Shares at any date, means the weighted average of the sale prices per Common Share at which the Common Shares have traded on the
Exchange or, if the Common Shares are not listed on any stock exchange, then on the over-the-counter market, for any 20 consecutive Trading
Days selected by the Borrower commencing not later than 45 Trading Days and ending no later than five (5) Trading Days before such date;
provided, however, if such Common Shares are not traded during such 45 day period for at least 20 consecutive Trading Days, the simple
average of the following prices established for each of 20 consecutive Trading Days selected by the Borrower commencing not later than
45 Trading Days before such date:

 

		(a)	the average of the bid and ask prices for each day on which there was no trading, and

 

		(b)	the closing price of the Common Shares for each day that there was trading,

 

or in the event that at any date the Common Shares
are not listed on the Exchange or on the over-the-counter market, the current market price shall be as determined by the directors of
the Borrower or such firm of independent chartered accountants as may be selected by the directors of the Borrower, acting reasonably,
and in good faith in their sole discretion; for these purposes, the weighted average price for any period shall be determined by dividing
the aggregate sale prices during such period by the total number of Common Shares sold during such period.

 

Any Common Shares owned by or held for the account
of the Borrower or any subsidiary or affiliate (as defined in the Securities Act (Ontario)) of the Borrower will be deemed not
to be outstanding for the purpose of any such computation.

 

If by the terms of the rights, options or warrants
referred to in this Section 4.3(2), there is more than one purchase, conversion or exchange price per Common Share, the aggregate price
of the total number of additional Common Shares offered for subscription or purchase, or the aggregate conversion or exchange price of
the convertible securities so offered, will be calculated for purposes of the adjustment on the basis of

 

		(c)	the lowest purchase, conversion or exchange price per Common Share, as the case may be, if such price
is applicable to all Common Shares which are subject to the rights, options or warrants, and

 

		(d)	the average purchase, conversion or exchange price per Common Share, as the case may be, if the applicable
price is determined by reference to the number of Common Shares acquired.

 

    -A 8-

    

    

 

To the extent that any adjustment in the Conversion
Price occurs pursuant to this Section 4.3(2) as a result of the fixing by the Borrower of a record date for the distribution of rights,
options or warrants referred to in this Section 4.3(2), the Conversion Price will be readjusted immediately after the expiration of any
relevant exchange, conversion or exercise right to the Conversion Price which would then be in effect based upon the number of Common
Shares actually issued and remaining issuable after such expiration, and will be further readjusted in such manner upon expiration of
any further such right.

 

If the Lender has exercised its Conversion Right
in accordance herewith during the Rights Period, the Lender will, in addition to the Common Shares to which it is otherwise entitled upon
such exercise, be entitled to that number of additional Common Shares equal to the result obtained when the difference, if any, between
the Conversion Price in effect immediately prior to, and the Conversion Price in effect immediately following the end of such Rights Offering
pursuant to this Section 4.3(2), is multiplied by the number of Common Shares received upon the exercise of the Conversion Right during
such period, and the resulting product is divided by the Conversion Price as adjusted for such

 

Rights Offering pursuant to this Section 4.3(2);
provided that no fractional Common Shares will be issued. Such additional Common Shares will be deemed to have been issued to the Lender
immediately following the end of the Rights Period and a certificate for such additional Common Shares will be delivered to the Lender
within ten Business Days following the end of the Rights Period.

 

(3)               
If and whenever at any time prior to the Maturity Date, the Borrower shall fix a record date for the making of a distribution to
all or substantially all the holders of its outstanding Common Shares of (i) shares of any class other than Common Shares (or other than
securities convertible into or exchangeable for Common Shares), or (ii) rights, options or warrants (other than rights, options or warrants
referred to in Section 4.3(2)), or (iii) evidences of its indebtedness, or (iv) assets (other than dividends paid in the ordinary course)
then, in each such case, the Borrower shall give written notice to the Lender with respect thereto, and the Lender shall have fifteen
(15) days after receipt of such notice to elect to convert any or all of the Principal Amount of this Debenture into Common Shares at
the then applicable Conversion Price and otherwise on terms and conditions set out in this Debenture. If the Lender elects to convert
any or all of the Principal Amount of this Debenture, such conversion shall occur immediately prior to the record date for the making
of such distribution. If the Lender elects not to convert any of the Principal Amount of this Debenture, there shall continue to be an
adjustment to the Conversion Price as a result of the making of such distribution, (herein referred to as a “Special Distribution”)
determined in the manner hereafter set out. In this Section 4.3(3) the term “dividends paid in the ordinary course”
shall include the value of any securities or other property or assets distributed in lieu of cash dividends paid in the ordinary course
at the option of shareholders.

 

The Conversion Price will be adjusted effective
immediately after such record date to a price determined by multiplying the Conversion Price in effect on such record date by a fraction:

 

		(a)	the numerator of which is:

 

		(i)	the product of the number of Common Shares outstanding on such record date and the Current Market Price
of the Common Shares on such record date; less

 

		(ii)	the aggregate fair market value (as determined by action by the directors of the Borrower, acting reasonably)
to the holders of the Common Shares of such securities or property or other assets so issued or distributed in the Special Distribution;
and

 

		(b)	the denominator of which is the number of Common Shares outstanding on such record date multiplied by
the Current Market Price of the Common Shares on such record date.

 

    -A 9-

    

    

 

Any Common Shares owned by or held for the account
of the Borrower or any subsidiary or affiliate (as defined in the Securities Act (Ontario)) of the Borrower will be deemed not
to be outstanding for the purpose of any such computation.

 

(4)               
In the case of any reclassification of, or other change in, the outstanding Common Shares pursuant to a Change of Control, the
Lender may elect, prior to the effective date of such Change of Control, to convert any or all of the Principal Amount of this Debenture
into Common Shares at the then applicable Conversion Price and otherwise on terms and conditions set out in this Debenture. To exercise
such right the Lender must provide a notice in writing to the Borrower no later than seven (7) days prior to the effective date of such
Change of Control, failing which the Lender’s right to convert this Debenture as a consequence of such Change of Control shall cease.
If the Lender elects to convert any or all of the Principal Amount of this Debenture, such conversion shall occur immediately prior to
the effective date of such Change of Control. If the Lender elects not to convert any of the Principal Amount of this Debenture, the Conversion
Price in effect after the effective date of such Change of Control shall be increased or decreased, as the case may be, in proportion
to any decrease or increase in the number of outstanding Common Shares resulting from such Change of Control so that the Lender, upon
exercising the Conversion Right after the effective date of such Change of Control, will be entitled to receive the aggregate number of
Common Shares or other securities, if any, which the Lender would have been entitled to receive as a result of such Change of Control
if, on the effective date thereof, the Lender had been the registered holder of the number of Common Shares to which the Lender was theretofore
entitled upon exercise of the Conversion Right.

 

(5)                In
the case of any reclassification of, or other change in, the outstanding Common Shares (other than a change referred to in Section
4.3(1), Section 4.3(2), Section 4.3(3) or 4.3(4) hereof), the Conversion Price shall be adjusted in such manner, if any, and at such
time, as the Board of Directors of the Borrower determines to be appropriate on a basis consistent with the intent of this Section
4.3; provided that if at any time a dispute arises with respect to adjustments provided for in this Article 4, such dispute will be
conclusively determined by the auditors of the Borrower or if they are unable or unwilling to act, by such other firm of independent
chartered accountants as may be selected by action by the directors of the Borrower, acting reasonably, and any such determination
will be binding on the Borrower and the Lender. The Borrower will provide such auditors or accountants with access to all necessary
records of the Borrower. If and whenever at any time after the date hereof there is a reclassification or redesignation of the
Common Shares outstanding at any time or change of the Common Shares into other shares or into other securities (other than as set
out in Section 4.3(1), (2), (3) or (4)), or a consolidation, amalgamation or Merger of the Borrower with or into any other
corporation or other entity (other than a consolidation, amalgamation or Merger which does not result in any reclassification or
redesignation of the outstanding Common Shares or a change of the Common Shares into other shares and other than as set forth in
Section 4.3(4)), or a transfer of the undertaking or assets of the Borrower as an entirety or substantially as an entirety to
another corporation or other entity (any of such events being called a “Capital Reorganization”), the Lender,
upon the exercising the Conversion Right, after the effective date of such Capital Reorganization, will be entitled to receive in
lieu of the number of Common Shares to which the Lender was theretofore entitled upon such exercise, the aggregate number of shares,
other securities or other property, if any, which the Lender would have been entitled to receive as a result of such Capital
Reorganization if, on the effective date thereof, the Lender had been the registered holder of the number of Common Shares to which
such Lender was theretofore entitled upon exercise of the Conversion Right. If determined appropriate by action of the directors of
the Borrower, appropriate adjustments will be made as a result of any such Capital Reorganization in the application of the
provisions set forth in this Section 4.3 with respect to the rights and interests thereafter of the Lender to the end that the
provisions set forth in this Section 4.3 will thereafter correspondingly be made applicable as nearly as may reasonably be in
relation to any shares, other securities or other property thereafter deliverable upon the exercise of the Conversion Right. Any
such adjustment must be made by and set forth in an amendment to this Debenture approved by action by the directors of the Borrower,
acting reasonably, and will for all purposes be conclusively deemed to be an appropriate adjustment.

 

(6)               
In any case in which this Section 4.3 shall require that an adjustment shall become effective immediately after a record date for
an event referred to herein, the Borrower may defer, until the occurrence of such event, issuing to the Lender before the occurrence of
such event, the additional Common Shares issuable upon such conversion by reason of the adjustment required by such event before giving
effect to such adjustment; provided, however, that the Borrower shall deliver to the Lender an appropriate instrument evidencing the Lender’s
right to receive such additional Common Shares upon the occurrence of the event requiring such adjustment and the right to receive any
distributions made on such additional Common Shares declared in favour of holders of record of Common Shares on and after the Issue Date
or such later date as the Lender would, but for the provisions of this Section 4.3(6), have become the holder of such additional Common
Shares pursuant to Section 4.3(2).

 

    -A 10-

    

    

 

(7)               
The adjustments provided for in this Section 4.3 are cumulative and shall apply to successive subdivisions, redivisions, reductions,
combinations, consolidations, distributions, issues or other event resulting in any adjustment under the provisions of this Section, provided
that, notwithstanding any other provision of this Section, no adjustment of the Conversion Price shall be required unless such adjustment
would require an increase or decrease of at least 1% in the Conversion Price then in effect; provided, however, that any adjustments which
by reason of this Section 4.3(7) are not required to be made shall be carried forward and taken into account in any subsequent adjustment.

 

Section 4.4 No Requirement
to Issue Fractional Common Shares

 

The Borrower shall not be
required to issue fractional Common Shares upon the conversion of the Debenture pursuant to this Article 4. If any fractional interest
in a Common Share, would, except for the provisions of this Section 4.4, be deliverable upon the conversion of any amount hereunder, the
number of Common Shares to be issued shall be rounded down to the nearest whole Common Share.

 

Section 4.5 Borrower to
Reserve Common Shares

 

The Borrower covenants with
the Lender that it will at all times reserve and keep available out of its authorized Common Shares, solely for the purpose of issue upon
exercise of the Conversion Right, and conditionally allot to the Lender, such number of Common Shares as shall then be issuable upon the
conversion of this Debenture.

 

The Borrower covenants with the Lender that all
Common Shares which shall be so issuable shall be duly and validly issued as fully paid and non-assessable.

 

Section 4.6 Certificate
as to Adjustment

 

The Borrower shall from time
to time, immediately after the occurrence of any event which requires an adjustment or readjustment as provided in Section 4.3, deliver
an officer’s certificate to the Lender specifying the nature of the event requiring the same and the amount of the adjustment necessitated
thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Subject to
the dispute resolution procedure in subsection 4.3(5), such certificate shall be binding and determinative of the adjustment to be
made, absent manifest error.

 

Section 4.7 Shareholder
of Record

 

For all purposes, on the Issue
Date or the applicable date specified in Section 4.2 the Lender shall be deemed to have become the holder of record of the Common Shares
into which the Principal Amount of this Debenture (or a portion thereof) is converted in accordance with Section 4.2.

 

Section 4.8 Resale Restrictions,
Legending and Disclosure

 

By its acceptance hereof the
Lender acknowledges that this Debenture and the Common Shares issuable upon conversion hereof will be subject to certain resale restrictions
under Canadian Securities Laws or the applicable securities laws of any other jurisdiction, and the Lender agrees to comply with all such
restrictions and laws. The Lender further acknowledges and agrees that all Common Share certificates will bear the legend substantially
in the form set forth on the face page hereof as well as any legends required by the Exchange, provided that such legend shall not be
required on Common Share certificates issued at any time following four months plus one day after the date hereof. The Lender acknowledges
that the Borrower will be required to provide to the applicable securities regulatory authorities the identity of the Lender and its principals
and the Lender hereby agrees thereto.

 

    -A 11-

    

    

 

Article
5 – RIGHTS OF DEBENTUREHOLDER

 

Section 5.1 Distribution
on Dissolution, Etc.

 

Subject to applicable law
and the rights of any holders of any Secured Debt or other indebtedness ranking in priority to the Lender, upon any sale, in one transaction
or a series of transactions, of all, or substantially all, of the assets of the Borrower or distribution of the assets of the Borrower
upon any dissolution or winding-up or total liquidation of the Borrower, whether in bankruptcy, liquidation, re-organization, insolvency,
receivership or other similar proceedings or upon an assignment to or for the benefit of creditors of the Borrower or otherwise any payment
or distribution of assets of the Borrower, whether in cash, property or security shall be paid or delivered by the trustee in bankruptcy,
receiver, assignee of or for the benefit of creditors or other liquidating agent of the Borrower making such payment or distribution,
directly to the holder of the Debentures or their representatives, to the extent necessary, to pay all obligations pursuant to the Debentures
in full.

 

Section 5.2 Certificate
Regarding Creditors

 

Upon any payment or distribution
of assets of the Borrower referred to in this Section 5.2, the Debentureholder shall be entitled to rely upon a certificate of the trustee
in bankruptcy, receiver, assignee of or for benefit of creditors or other liquidating agent of the Borrower making such payment or distribution,
delivered to the Debentureholder, for the purpose of ascertaining the Persons entitled to participate in such distribution, and other
indebtedness of the Borrower, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Section 5.2.

 

Section 5.3 Rights of Debentureholder
Reserved

 

Nothing contained in
this Article 5 or elsewhere in this Debenture is intended to or shall impair, as between the Borrower and the Debentureholder, the
obligation of the Borrower, which is absolute and unconditional, to pay to the Debentureholder the Principal Amount and interest on
the Debenture, as and when the same shall become due and payable in accordance with their terms, nor shall anything herein prevent
the Debentureholder from exercising all remedies otherwise permitted by applicable law upon default under this Debenture.

 

Section 5.4 Payment of
Debenture Permitted

 

Nothing contained in this
Debenture shall:

 

		(a)	prevent the Borrower from making payments of the Principal Amount, interest and other amounts to the Debentureholder
under this Debenture as herein provided;

 

		(b)	prevent the conversion of this Debenture into Common Shares as herein provided or as otherwise permitted
according to law, including in connection with a bankruptcy, reorganization, insolvency, or other arrangement with creditors, of the Borrower;
and

 

		(c)	prevent the redemption of this Debenture by the Borrower as herein provided or as otherwise permitted
according to law.

 

Section 5.5 Security

 

The undersigned acknowledges
that the loan evidenced by this Debenture is secured, and the undersigned hereby grants a security interest, to and in favour of the Lender
by and in all of the assets of the undersigned, except for any ownership interest or securities of Bophelo Bio Science and Wellness (Pty)
Ltd., or the assets owned thereby which shall not be subject to any security interest by the Lender, in favour of the Lender pursuant
to a general security agreement (the “Security”) dated the date hereof. The undersigned hereby consents and agrees
to the loan, this Debenture and the Security.

 

The undersigned hereby acknowledges,
confirms and agrees that the time for attachment has not been postponed and that the undersigned has received valuable consideration for
the granting of the Security.

 

    -A 12-

    

    

 

Article
6 – Covenants of the Borrower

 

Section 6.1 Covenants

 

The Borrower covenants and
agrees, for as long this Debenture remains outstanding, that:

 

(1)               
Maintain Corporate Existence. Each of the Borrower and its material Subsidiaries shall maintain its corporate existence,
and preserve its rights, powers, licenses and privileges which are necessary or material to the conduct of its business, and not materially
change the nature of its business;

 

(2)               
Compliance with Laws. Each of the Borrower and its Subsidiaries shall comply in all material respects with all applicable
laws, rules, governmental restrictions and regulations;

 

(3)               
Maintain Books and Records. The Borrower shall, and shall cause each of its Subsidiaries to, keep adequate and accurate
records and books of account in which complete entries will be made reflecting all financial transactions and prepare its financial statements
in accordance with generally accepted accounting principles;

 

(4)               
Payment of Taxes. Each of the Borrower and its Subsidiaries shall pay and discharge promptly all Taxes assessed or imposed
upon it or its property as and when the same become due and payable save and except where it contests in good faith the validity thereof
by proper legal proceedings;

 

(5)               
Payment of Obligations. The Borrower shall pay all principal, interest and other amounts owing to the Lender hereunder promptly
when due;

 

(6)               
Performance of Covenants. The Borrower shall promptly perform and satisfy all covenants and obligations to be performed
by it under this Debenture;

 

(7)               
 Disposal of Assets. Neither the Borrower nor its Subsidiaries shall convey, sell, lease, assign, transfer or otherwise
dispose of any of their respective material assets, other than in the ordinary course of business and for the purpose of carrying on the
same, except for any inter-company reorganization where the Lender has been given 10 Business Days notice thereof and the Borrower has
received the consent of the Lender acting reasonably but where security for the obligations hereof remain sufficient to cover any principal
and interest outstanding thereon; and

 

(8)               
Notice of Event of Default. The Borrower shall promptly, and in any event within three (3) Business Days after the Borrower
becoming aware, give notice to the Lender of the existence of any Event of Default.

 

    -A 13-

    

    

 

Article
7 – REPRESENTATIONS, WARRANTIES AND Covenants of the LENDER

 

Section 7.1 Representations
and Warranties

 

The Lender represents and
warrants to the Borrower that, as of the date of this Debenture, the Principal Amount is an amount equal to the aggregate principal amount
of that indebtedness owed to the Borrower (or any of its direct or indirect, wholly-owned subsidiaries) by Cannahealth Limited, Bophelo
Holdings Ltd., Bophelo Bio Science & Wellness (Pty) Ltd. and Canmart Ltd., as a result of the purchase by the Borrower of all of the
issued and outstanding shares in the capital of Cannahealth Limited, as well as funds expended by the Lender to operate the business,
including but not limited to salaries, professional fees, capital expenditures, working capital, travel and other costs or the reorganization
undertaken thereby in connection with such purchase.

 

Section 7.2 Covenants

 

(1)               
The Lender agrees that, within ten (10) Business Days of the signing of the Debenture by both the Lender and the Borrower, the
Lender shall dispose of so many of the Common Shares that are held by the Lender that are necessary in order for the Lender to hold less
than 50% of the issued and outstanding Common Shares. The Lender agrees to provide the Borrower with a written confirmation of the disposal
within (3) three Business Days of such a disposal taking place. The Borrower agrees that any delays, on the part of the Borrower, in the
issuance of share certificates, or the completion of any other applicable documentation, by the Borrower that are requisite to the disposal
of any Common Shares held by the Lender pursuant to the covenants contemplated in this Section 7.2, shall not be taken into account when
determining the ten (10) Business Days available to the Lender to complete the disposal.

 

(2)               
The Lender covenants and agrees, for as long this Debenture remains outstanding, that it shall not own 50% or more of the issued
and outstanding Common Shares and shall not exercise any conversion rights of any convertible securities that would result in the Lender
owning 50% or more of the issued and outstanding Common Shares (the “Non-Control Covenant”).

 

(3)               
In the event that the Lender is in breach of the Non-Control Covenant, the Borrower shall be entitled, at its election, to:

 

		(a)	suspend repayment of the Principal Amount and any accrued interest thereon at the time of breach;

 

		(b)	suspend the charging of interest; and

 

		(c)	extend the Maturity Date by one day for each day that the Lender is in breach of the Non-Control Covenant.

 

Article
8 – Events of Default

 

Section 8.1 Events of Default

 

(1)               
Any of the following shall constitute an Event of Default under this Debenture (each an “Event of Default”):

 

		(a)	the Principal Amount owing hereunder shall not be paid when due;

 

		(b)	if the Borrower fails to pay when due any interest or other amount owing by the Borrower to the Lender
and such breach or default shall continue for ten (10) Business Days of when it was due;

 

    -A 14-

    

    

 

		(c)	if the Borrower breaches any representation contained herein, fails to make any payment or to observe,
perform or comply with any term, covenant, condition or obligation of the Borrower contained herein or is otherwise in default of any
of the provisions contained herein (other than referred in subparagraphs (a) and (b) of this Section 8.1) and such default, if capable
of being remedied, is not remedied within thirty (30) days after the Borrower receives written notice of such default from the Lender;

 

		(d)	if the Borrower shall generally fail to pay, or admit in writing its inability or unwillingness to pay,
debts as they become due or if a decree or order of a court having jurisdiction is entered adjudging the Borrower a bankrupt or insolvent;

 

		(e)	if the Borrower shall apply for, consent to or acquiesce in the appointment of a trustee, receiver, or
other custodian for the Borrower or for a substantial part of the property thereof, or make a general assignment for the benefit of creditors;

 

		(f)	if the Borrower shall in the absence of such application, consent or acquiescence, become subject to the
appointment of a trustee, receiver, or other custodian for the Borrower or for a substantial part of the property thereof, or have a distress,
execution, attachment, sequestration or other legal process levied or enforced on or against a substantial part of the property of the
Borrower; or,

 

		(g)	if the Borrower shall permit or suffer to exist the commencement of any bankruptcy, reorganization, debt
arrangement or other case or proceeding under any bankruptcy or insolvency law, or any dissolution, winding up or liquidation proceeding,
in respect of the Borrower and, if any such case or proceeding is not commenced by the Borrower, such case or proceeding, if contested
by the Borrower is not dismissed within thirty (30) days.

 

(2)               
If an Event of Default described in (e), (f) or (g) above shall occur, the entire unpaid principal of and accrued interest on this
Debenture shall become immediately due and payable without any declaration or other act on the part of the Lender. Immediately upon the
occurrence of any Event of Default described in (e), (f) or (g) above, or upon failure to pay this Debenture on the Maturity Date, the
Lender, with or without notice to the Borrower, may proceed to protect, enforce, exercise and pursue any and all rights and remedies available
to the Lender under this Debenture, or at law or in equity.

 

(3)               
If any other Event of Default shall occur for any reason, whether voluntary or involuntary, and be continuing, the Lender may,
by notice to the Borrower, declare all or any portion of the outstanding Principal Amount of this Debenture to be due and payable, whereupon
the full unpaid amount of this Debenture shall become immediately due and payable without further notice, demand, presentment, protest
or other notice of any kind, all of which are expressly waived by the Borrower.

 

Article
9 – Mutilation, Loss, Theft or Destruction of Debenture Certificate

 

In case this Debenture certificate
shall become mutilated or be lost, stolen or destroyed, the Borrower, shall issue and deliver, a new replacement debenture certificate
upon surrender and cancellation of the mutilated Debenture certificate or, in the case of a lost, stolen or destroyed Debenture certificate,
in lieu of and in substitution for the same. In the case of loss, theft or destruction, the applicant for a substituted debenture certificate
shall furnish to the Borrower such evidence of the loss, theft or destruction of the Debenture certificate as shall be satisfactory to
the Borrower in its discretion and shall also furnish an indemnity and surety bond satisfactory to the Borrower in its discretion. The
applicant shall pay all reasonable expenses incidental to the issuance of any substituted debenture certificate.

 

    -A 15-

    

    

 

Article
10 – General

 

Section 10.1 Notice

 

Any demand, notice, direction
or other communication to be made or given hereunder (in each case, “Communication”) shall be in writing and shall
be made or given by personal delivery, by courier, by facsimile or email transmission, or sent by registered mail, charges prepaid, addressed
to the respective parties as follows:

 

		(a)	if to the Borrower:

 

AKANDA CORP.

Attention: Tej Virk

77 King Street West, Suite 400

Toronto-Dominion Centre

Toronto, ON M5K 0A1

Attention: Tej Virk

E-mail: [*]

 

with a copy to:

 

Aird Berlis LLP

Brookfield Place, 181 Bay Street, Suite
1800

Toronto, ON M5J 2T9

Attention:     Sean Mason

E-mail:         smason@airdberlis.com

 

		(b)	if to the Lender:

 

Halo Collective Inc.

504 - 100 Park Royal

West Vancouver, BC V7T 1A2

Attention:       Kiranjit
Sidhu

E-mail:           kiran@halocanna.com

 

with a copy to:

 

Dentons Canada LLP

77 King Street West, Suite 400

Toronto-Dominion Centre

Toronto, ON M5K 0A1

Attention:       Eric
Foster

E-mail:           eric.foster@dentons.com

 

or to such other address or email as any party
may from time to time designate in accordance with this Section. Any Communication made by personal delivery or by courier shall be conclusively
deemed to have been given and received on the day of actual delivery thereof or if such day is not a Business Day, on the first Business
Day thereafter. Any Communication made or given by email on a Business Day before 4:00 p.m. (local time of the recipient) shall be conclusively
deemed to have been given and received on such Business Day and otherwise shall be conclusively deemed to have been given and received
on the first Business Day following the transmittal thereof. Any Communication that is mailed shall be conclusively deemed to have been
given and received on the fifth Business Day following the date of mailing but if, at the time of mailing or within five Business Days
thereafter, there is or occurs a labour dispute or other event that might reasonably be expected to disrupt delivery of documents by mail,
any Communication shall be delivered or transmitted by any other means provided for in this Section.

 

    -A 16-

    

    

 

Section 10.2 Change of
Control of Borrower

 

By its acceptance hereof,
each of the Borrower and the Lender acknowledges and agrees that in the event a Change of Control or Merger occurs, then all references
herein to the Borrower shall extend to and include the entity resulting therefrom or which thereafter will carry on the business of the
Borrower.

 

Section 10.3 Amendments

 

This Debenture may not be
amended or otherwise modified except by an instrument in writing executed by the Borrower and the Lender.

 

Section 10.4
Waivers

 

The Lender shall not, by any
act, delay, omission or otherwise, be deemed to have expressly or impliedly waived any of its rights, powers and/or remedies unless such
waiver shall be in writing and executed by an authorized officer of the Lender. Any such waiver shall be enforceable only to the extent
specifically set forth therein. A waiver by the Lender of any right, power and/or remedy on any one occasion shall not be construed as
a bar to or waiver of any such right, power and/or remedy which the Lender would otherwise have on any future occasion, whether similar
in kind or otherwise.

 

Section 10.5 Registration
of Debenture

 

The Borrower shall cause to
be kept at the head office of the Borrower in the City of Toronto, Ontario a register in which shall be entered the name and latest known
address of the Lender and any other holders of Debentures. Such register shall at all reasonable times during regular business hours of
the Borrower be open for inspection by the Lender and any such holder. The Borrower shall not be charged with notice of or be bound to
see to the performance of any trust, whether express, implied, or constructive, in respect of this Debenture and may act on the direction
of the Lender, whether named as trustee or otherwise, as though the Lender were the beneficial owner of this Debenture.

 

Section 10.6 No Transfer
of Debenture

 

No transfer of this Debenture
shall be permitted.

 

Section 10.7 Release and
Discharge

 

If the Lender exercises all conversion rights
attached to this Debenture pursuant to Article 4 hereof or if the Borrower pays all of the Obligations in full to the Lender, the Lender
shall release this Debenture and the Borrower shall be, and shall be deemed to have, discharged of all its obligations under this Debenture.

 

Section 10.8 Successors
and Assigns

 

This Debenture shall enure
to the benefit of the Lender and its successors and assigns and shall be binding upon the Borrower and its successors and permitted assigns.

 

Section 10.9 Time

 

Time shall be of the essence
of this Debenture.

 

    -A 17-

    

    

 

Section 10.10 Governing
Law

 

This Debenture shall be governed
by and interpreted in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein. The Borrower
and, by its acceptance hereof, the Lender each hereby irrevocably submit and attorn to the nonexclusive jurisdiction of the courts of
the Province of Ontario in connection with this Debenture.

 

Section 10.11 Further Assurances

 

The Borrower shall forthwith,
at its own expense and from time to time, do or file, or cause to be done or filed, all such things and shall execute and deliver all
such documents, agreements, opinions, certificates and instruments reasonably requested by the Lender or its counsel as may be necessary
or desirable to complete the transactions contemplated by this Debenture and carry out its provisions and intention.

 

Schedule B –
Conversion Notice

 

TO:       HALO COLLECTIVE INC. (the “Lender”)

 

Pursuant to the Secured Convertible Debenture
(the “Debenture”) of the Borrower issued to the undersigned on November 3, 2021, the Borrower hereby notifies you that
$                                   
of the principal amount outstanding and $                              
of interest thereon under the Debenture shall be converted into common shares in the capital of the Borrower at a price per Common Share
of $                  .

 

[Describe the reason for the conversion –
if it is a Triggering Event, etc.]

 

Please confirm the registration instructions for
the certificates representing the Common Shares to be issued in the following format within five (5) Business Days hereof:

 

	Name	Address for Delivery	# of Common Shares
	 	 	 

	(Print name as name is to appear on share certificate)	 	 
	 	 	 

DATED this _____ day of ___________________,
20         .

 

	 	AKANDA CORP.  
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    -B 1-Exhibit 4.3

 

Form of Warrant Agreement 

 

THE
REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES BY HIS, HER OR ITS ACCEPTANCE HEREOF, THAT SUCH HOLDER WILL NOT FOR A PERIOD OF ONE
HUNDRED EIGHTY (180) DAYS FOLLOWING THE Effective DATE OF THE REGISTRATION STATEMENT (AS DEFINED BELOW): (A) SELL, TRANSFER, ASSIGN, PLEDGE
OR HYPOTHECATE THIS PURCHASE WARRANT TO ANYONE OTHER THAN OFFICERS OR PARTNERS OF BOUSTEAD securities, llc, EACH OF WHOM SHALL HAVE AGREED
TO THE RESTRICTIONS CONTAINED HEREIN, IN ACCORDANCE WITH FINRA CONDUCT RULE 5110(E)(1), OR (B) CAUSE THIS PURCHASE WARRANT OR THE
SECURITIES ISSUABLE HEREUNDER TO BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT OR CALL TRANSACTION THAT WOULD RESULT IN THE
EFFECTIVE ECONOMIC DISPOSITION OF THIS PURCHASE WARRANT OR THE SECURITIES HEREUNDER, EXCEPT AS PROVIDED FOR IN FINRA RULE 5110(E)(2).

 

THIS PURCHASE WARRANT IS NOT
EXERCISABLE PRIOR TO [*], 2022 (THE DATE OF ISSUANCE). VOID AFTER 5:00 P.M., EASTERN TIME, [*], 2027 (THE DATE THAT IS FIVE YEARS FROM
THE DATE ON WHICH THE REGISTRATION STATEMENT IS DECLARED EFFECTIVE).

 

COMMON SHARES PURCHASE WARRANT

 

For the Purchase of [*] Common Shares

 

Of

AKANDA CORP.

 

1.           Purchase
Warrant. THIS CERTIFIES THAT, pursuant to that certain Underwriting Agreement by and between Akanda Corp., a company incorporated
in the Province of Ontario (the “Company”) and Boustead Securities, LLC (“Boustead”), dated [*],
2022 (the “Underwriting Agreement”), Boustead (in such capacity with its permitted successors or assigns, the “Holder”),
as registered owner of this Purchase Warrant, is entitled, upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time or from time to time from [*], 2022 (the “Issuance Date”), and at or before 5:00
p.m., Eastern time, [*], 2027 (the “Expiration Date,”) which such date is five
(5) years from the effective date of the registration statement on Form F-1 (Registration No. 333-[*])
of the Company (the “Registration Statement”), but not thereafter, to subscribe for, purchase and receive,
in whole or in part, up to [*] Common Shares of the Company, without par value (the “Shares”), subject to adjustment
as provided in Section 5 hereof. If the Expiration Date is a day on which banking institutions are authorized by law
or executive order to close, then this Purchase Warrant may be exercised on the next succeeding day that is not such a day in accordance
with the terms herein. During the period commencing on the date hereof and ending on the Expiration Date, the Company agrees not to take
any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $[*] per Share (125% of the price
of the Shares sold in the Offering); provided, however, that upon the occurrence of any of the events specified in Section 5 hereof,
the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such
exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or
the adjusted exercise price, depending on the context. Any term not defined herein shall have the meaning ascribed thereto in the Underwriting
Agreement.

 

2.           Exercise.

 

2.1          Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto as Exhibit A (the “Exercise
Form”) must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and payment of
the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately available funds to an account designated
by the Company or by certified check or official bank check to the order of the Company. If the subscription rights represented hereby
shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without
further force or effect, and all rights represented hereby shall cease and expire.

 

     

     

    

 

2.2          Cashless
Exercise. In lieu of exercising this Purchase Warrant by payment of cash or check payable to the order of the Company pursuant to Section
2.1 above, Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant (or the portion thereof
being exercised), by surrender of this Purchase Warrant to the Company, together with the Exercise Form, in which event the Company shall
issue to Holder, Shares in accordance with the following formula:

 

	    X   =	Y(A – B)
	A

  

	 	Where,	X   =    The number of Shares to be issued to Holder;
	 	 	Y   =    The number of Shares
for which the Purchase Warrant is being exercised;
	 	 	A   =    The fair market
value of one Share; and
	 	 	B   =    The Exercise Price.

 

For purposes of this Section
2.2, the fair market value means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Shares are then listed or quoted on a Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading
day on such Eligible Market during the five trading days preceding the exercise, (b) if OTCQB or OTCQX is not an Eligible Market, the
value shall be deemed to be the highest intra-day or closing price on any trading day on the OTCQB or OTCQX on which the Common Shares
are then quoted during the five trading days preceding the exercise, as applicable, (c) if the Common Shares are not then listed or quoted
for trading on OTCQB or OTCQX and if prices for the Common Shares are then reported in the “Pink Sheets” published by OTC
Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the “OTC Markets Group”,
the value shall be deemed to be the highest intra-day or closing price on any trading day on the Pink Sheets on which the Common Shares
are then quoted during the five trading days preceding the exercise, or (d) in all other cases, the fair market value of a Common Share
as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company. 

 

2.3       Legend.
Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as
follows unless such securities have been registered under the Securities Act of 1933, as amended (the “Securities Act”):

 

“The securities
represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except
pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration under the Securities
Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

3.           Transfer.

 

3.1          General
Restrictions. The Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder (or permitted
assignees under FINRA Rule 5110(e)(1)) will not for a period of one hundred eighty (180) days following the date the Registration
Statement is declared effective (the “Effective Date”) by the Securities and Exchange Commission (the
 “Commission”): (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant to anyone other than: (i)
Boustead or an underwriter, placement agent, or a selected dealer participating in the initial public offering (the
 “Offering”) contemplated by the Underwriting Agreement, or (ii) officers or partners of Boustead or of any such
underwriter, placement agent or selected dealer, each of whom in (i) and (ii) shall have agreed to the restrictions contained
herein, in accordance with FINRA Conduct Rule 5110(e)(1), or (b) cause this Purchase Warrant or the securities issuable
hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(e)(2). On and
after that date that is one hundred eighty (180) days after the effective date of the Registration Statement, transfers to others
may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the
Holder must deliver to the Company the assignment form attached hereto as Exhibit B duly executed and completed,
together with this Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall
within five (5) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new
Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the
aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

     

     

    

 

3.2          Restrictions
Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and until: (i) if
required by law, the Company has received the opinion of counsel for the Company that the securities may be transferred pursuant to an
exemption from registration under Securities Act and applicable state securities laws, or (ii) a registration statement or post-effective
amendment to the Registration Statement relating to the offer and sale of such securities that includes a current prospectus has been
filed and declared effective by the Commission and compliance with applicable state securities law has been established.

 

4.           New
Purchase Warrants to be Issued.

 

4.1          Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or
assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant
for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer
tax if exercised pursuant to Section 2.1 hereof, the Company shall cause to be delivered to the Holder without charge
a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase
the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

4.2          Lost
Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase
Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase
Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction
shall constitute a substitute contractual obligation on the part of the Company.

 

5.           Adjustments.

 

5.1          Adjustments
to Exercise Price and Number of Shares. The Exercise Price and the number of Shares underlying this Purchase Warrant shall be subject
to adjustment from time to time as hereinafter set forth:

 

5.1.1       Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 5.1.3 below, the number
of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the
effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding shares,
and the Exercise Price shall be proportionately decreased.

 

5.1.2       Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 5.1.3 below, the number of outstanding
Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date
thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares, and the Exercise
Price shall be proportionately increased.

 

5.1.3       Replacement
of Shares upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than a
change covered by Section 5.1.1 or Section 5.1.2 hereof or that solely affects the par value
of such Shares, or in the case of any share reconstruction or amalgamation or merger or consolidation of the Company with or into
another corporation (other than a consolidation or share reconstruction or amalgamation or merger in which the Company is the
continuing corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case
of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an
entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter
(until the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate
Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or
property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation or merger, or
consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company
obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a
change in Shares covered by Section 5.1.1 or Section 5.1.2, then such adjustment shall be made pursuant
to Section 5.1.1, Section 5.1.2 and this Section 5.1.3. The provisions of
this Section 5.1.3 shall similarly apply to successive reclassifications, reorganizations, share
reconstructions or amalgamations, mergers or consolidations, sales or other transfers.

 

     

     

    

   

5.1.4       Changes
in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section
5.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated
in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Warrants
reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the date hereof or
the computation thereof.

 

5.2          Substitute
Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation or merger of the Company
with or into, another corporation (other than a consolidation or share reconstruction or amalgamation or merger which does not result
in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction or
amalgamation or merger shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase
Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to
receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon
such consolidation or share reconstruction or amalgamation or merger, by a holder of the number of Shares of the Company for which such
Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation or merger, sale
or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for
in this Section 5. The above provision of this Section 5 shall similarly apply to successive consolidations
or share reconstructions or amalgamations or mergers.

 

5.3          Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise
of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent
of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest
whole number of Shares or other securities, properties or rights.

 

6.           Reservation
and Listing. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance
upon exercise of this Purchase Warrant, such number of Shares or other securities, properties or rights as shall be issuable upon the
exercise thereof. The Company covenants and agrees that, upon exercise of this Purchase Warrant and payment of the Exercise Price therefor,
in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully
paid and non-assessable and not subject to preemptive rights of any shareholder. The Company further covenants and agrees that upon exercise
of this Purchase Warrant and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise shall
be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long as this Purchase
Warrant shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise of
this Purchase Warrant to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable, on
the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public in the Offering may then be listed and/or
quoted.

 

7.       Registration.
The issuance of the Warrant and the Warrant Shares has been registered on the Registration Statement. The Company shall file
periodic filings with the Commission during the term of this Purchase Warrant as required by the rules and regulations issued by the
Commission. To the extent the Company does not maintain an effective registration statement for the Shares, during the term of this
Purchase Warrant and for a period of no more than seven (7) years from the commencement of sales of the Offering in accordance with
FINRA Rule 5110(g)(8)(D), whenever the Company proposes to register any of its securities under the Securities Act, whether for its
own account or for the account of another shareholder (except for the registration of securities (A) to be offered pursuant to an
employee benefit plan on Form S-8 or (B) pursuant to a registration made on Form F-4, or any successor forms then in effect) at any
time and the registration form to be used may be used for the registration of the Shares, it will so notify in writing the Holder (a
 “Piggyback Notice”) as soon as practicable but in no event less than five (5) business days before
the anticipated filing date and offer to the Holder the opportunity to register the sale of such number of Shares as such Holder may
request in writing within three (3) business days after receipt of such Piggyback Notice (a “Piggyback
Registration”). Notwithstanding the foregoing, the Company may delay any such notice to the Holder, including until
after filing a registration statement, so long as the Holder has the same amount of time to determine whether to participate in an
offering as it would have had if such notice had not been so delayed. The Company shall cause such Shares to be included in such
registration and shall use commercially reasonable efforts to cause the managing underwriter or underwriters of a proposed
underwritten offering to permit the Shares requested to be included in a Piggyback Registration on the same terms and conditions as
any similar securities of the Company and to permit the sale or other disposition of such Shares in accordance with the intended
method(s) of distribution thereof; provided, however, that if, solely in connection with any primary underwritten public offering
for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the
number of Common Shares which may be included in the registration statement because, in such underwriter(s)’ judgment,
marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be
obligated to include in such registration statement only such limited portion of the Shares with respect to which the Holder
requested inclusion hereunder as the underwriter shall reasonably permit. Holder shall enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such Piggyback Registration.

 

     

     

    

 

8.           Certain
Notice Requirements.

 

8.1          Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to receive
notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder of the
Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events described in Section
8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen days
prior to the date fixed as a record date or the date of closing the transfer books (the “Notice Date”) for the determination
of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing
of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice
given to the other shareholders of the Company at the same time and in the same manner that such notice is given to the shareholders.

 

8.2          Events
Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of
the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive
a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer to
all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable for
shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or
winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation or merger) or a sale
of all or substantially all of its property, assets and business shall be proposed.

 

8.3          Notice
of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section
5 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe
the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s
Chief Financial Officer.

 

     

     

    

 

8.4          Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall be
deemed to have been duly made (1) when hand delivered, (2) when mailed by express mail or private courier service or (3) when the
event requiring notice is disclosed in all material respects and filed in a current report on Form 8-K (or similar report of the Company
required of foreign private issuers) or in a definitive proxy statement on Schedule 14A prior to the Notice Date: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to following
address or to such other address as the Company may designate by notice to the Holders:

  

If to the Holder:

 

Boustead Securities, LLC

6 Venture, Suite 395

Irvine, CA 92618

Fax: (815) 301-8099

Attention: Keith Moore, CEO

 

with a copy (which shall
not constitute notice) to:

 

BEVILACQUA PLLC

1050 Connecticut Avenue, Suite 500

Washington, DC 20036

Fax: (202) 869-0889

Attn: Louis A. Bevilacqua, Esq.

 

If to the Company:

 

Akanda Corp.

1a, 1b Learoyd Road

New Romney TN28
8XU, United Kingdom

Fax: [*]

Attention: Tejinder
Virk, CEO

 

with copies (which shall
not constitute notice) to:

 

Rimon, P.C.

423 Washington Street, Suite 600

San Francisco, California 94111

Fax: [*]

Attn: Mark C. Lee

 

Eric Foster Dentons Canada LLP

77 King Street West, Suite 400

Toronto-Dominion Centre

Toronto, ON M5K 0A1 Canada

Fax: [*]

Attn: [*]

 

9.           Miscellaneous.

 

9.1          Amendments.
The Company and Boustead may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders in
order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other
provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company and Boustead may
deem necessary or desirable and that the Company and Boustead deem shall not adversely affect the interest of the Holders. All other modifications
or amendments shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment
is sought.

 

9.2          Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning
or interpretation of any of the terms or provisions of this Purchase Warrant.

   

9.3          Entire
Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection
with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

     

     

    

 

9.4          Binding
Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their
permitted assignees, respective successors, legal representatives and assigns, and no other person shall have or be construed to have
any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.

 

9.5          Governing
Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of California, without giving effect to conflict of laws principles thereof. The Company hereby agrees that
any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought and enforced
in the courts located in Los Angeles, California, or in the United States District Court located in Los Angeles, California, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting
a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section
8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding
or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other
party(ies) all of its reasonable attorneys’ fees and expenses relating to such action or proceeding and/or incurred in connection
with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders
and affiliates) and the Holder hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial
by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

9.6          Waiver,
etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed
or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof
or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Warrant. No waiver of any breach,
non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument
executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance
or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

9.7          Exchange
Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any time prior
to the complete exercise of this Purchase Warrant by Holder, if the Company and Boustead enter into an agreement (“Exchange Agreement”)
pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash or a combination of both,
then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

9.8          Execution
in Counterparts. This Purchase Warrant may be executed in two (2) or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

[Remainder of page intentionally left blank.] 

 

     

     

    

 

IN WITNESS WHEREOF, the Company has caused this Purchase Warrant
to be signed by its duly authorized officer as of [*], 2022. 

 

	AKANDA CORP.	 
	 	 	 
	By:	 	 
	 	Name: Tejinder Virk	 
	 	Title: Chief Executive Officer	 

 

     

     

    

 

EXHIBIT A

 

Form to be used to exercise Purchase Warrant:

 

Date: __________, 20___

 

The undersigned hereby elects
irrevocably to exercise the Purchase Warrant for ______ Shares of Akanda Corp., a company incorporated in the Province of Ontario (the
 “Company”) and hereby makes payment of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant
thereto. Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if
applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The undersigned hereby elects
irrevocably to convert its right to purchase ___ Shares under the Purchase Warrant for ______ Shares, as determined in accordance with
the following formula:

 

	X	=	Y(A-B)
	 	 	A

 

	 	Where,	X   =   The number of Shares to be issued to Holder;
	 	 	Y   =   The number of Shares
for which the Purchase Warrant is being exercised;
	 	 	A   =   The fair market value
(defined in Section 2.2 of the Purchase Warrant) of one Share which is equal to $_____; and
	 	 	B   =   The Exercise Price which
is equal to $______ per share

 

The undersigned agrees and
acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with respect to the calculation
shall be resolved by the Company in its sole discretion.

 

Please issue the Shares
as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant
representing the number of Shares for which this Purchase Warrant has not been exercised. 

 

	
	 	 
	Signature	 
	 	 
	
	Name/Title 	 

 

     

     

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

Delivery of Warrant Shares.
The Company shall deliver to Holder, or its designee or agent as specified below, __________ Warrant Shares in accordance with the terms
of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

 

__ Check here if requesting
delivery as a certificate to the following name and to the following address:

 

	Issue to:	 
	 	 
	 	 

  

__ Check here if requesting delivery by
Deposit/Withdrawal at Custodian as follows:

 

	DTC Participant:	 
	DTC Number:	 
	Account Number:	 
	 	 	 

	
    Date: _____________ __, 

     
	 
	 	 
	Name of Registered Holder	 

 

	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

	 	Tax ID:                                             	 

 

	 	Electronic Mail :                                    	 

 

     

     

    

 

EXHIBIT B

 

Form to be used to assign Purchase Warrant:

 

(To be executed by the registered
Holder to effect a transfer of the within Purchase Warrant):

 

FOR VALUE RECEIVED,                                            does
hereby sell, assign and transfer unto the right to purchase shares of Akanda Corp., a company incorporated in the Province of Ontario
(the “Company”), evidenced by the Purchase Warrant and does hereby authorize the Company to transfer such right on
the books of the Company.

 

Dated:  ____________, 20__

 

Signature

 

NOTICE: The signature to
this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any
change whatsoever.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00339-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00339-of-00352.parquet"}]]