Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact.

On December 6, 2023, the Issuer held its annual general of shareholders at which time all matters put to shareholders were approved including the number of directors of the Company that was fixed at five, the election of directors to the board of directors of the Issuer and the appointment of Kost Forer Gabbay & Kasierer, a member of Ernst & Young Global as auditor of the Issuer.

On December 28, 2023 a settlement was reached in the Planning and Construction Legal Proceedings against Focus Medical Herbs Ltd. (“Focus Medical”), a company over which the Issuer maintains “de facto” control. As previously disclosed in the Issuer’s annual information form dated April 26, 2021, and the press release dated July 13, 2021, as well as in the Issuer's financial statements and MD&A until this date, certain allegations were made against Focus Medical regarding inadequate permitting for construction at its cultivation facility. The settlement involved Focus Medical, and Oren Shuster, Refael Gabay, and Yaron Berger, the former CEO of Focus Medical, along with the three landowners on whose property Focus Medical operated the cultivation facility. The settlement resulted in the dismissal of all criminal charges against the individual defendants, with only Focus Medical being charged. Focus Medical received a monetary fine of approximately 129,000 CAD (350,000 NIS), payable in 10 installments. After a long legal process since the indictment, Focus Medical has destroyed all the buildings that didn’t have the construction permits, closed the cultivation facility in Sdei Avraham in June 2022, ceased with its cultivation operation and now focusing on import and sales operations. Currently, the Issuer's management do not anticipate a material impact on the licensing or normal course of operations for Focus Medical due to the indictment and the settlement that has been achieved.

Provide a general overview and discussion of the activities of management.

Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law.

Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned.

Describe any new business relationships entered into between the Issuer, the Issuer’s affiliates or third parties including contracts to supply products or services, joint venture agreements and licensing agreements etc. State whether the relationship is with a Related Person of the Issuer and provide details of the relationship.

Describe the expiry or termination of any contracts or agreements between the Issuer, the Issuer’s affiliates or third parties or cancellation of any financing arrangements that have been previously announced.

Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the disposition was to a Related Person of the Issuer and provide details of the relationship.

Describe the acquisition of new customers or loss of customers.

Describe any new developments or effects on intangible products such as brand names, circulation lists, copyrights, franchises, licenses, patents, software, subscription lists and trade-marks.

Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs.

Report on any labour disputes and resolutions of those disputes if applicable.

Describe and provide details of legal proceedings to which the Issuer became a party, including the name of the court or agency, the date instituted, the principal parties to the proceedings, the nature of the claim, the amount claimed, if any, if the proceedings are being contested, and the present status of the proceedings.

Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness.

Provide details of any securities issued and options or warrants granted.

Provide details of any loans to or by Related Persons.

Provide details of any changes in directors, officers or committee members.

Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends.

The undersigned is a director and/or senior officer of the Issuer and has been duly authorized by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance.

As of the date hereof there were no material information concerning the Issuer which has not been publicly disclosed.

The undersigned hereby certifies to the Exchange that the Issuer is in compliance with the requirements of applicable securities legislation (as such term is defined in National Instrument 14-101) and all Exchange Requirements (as defined in CNSX Policy 1).

All of the information in this Form 7 Monthly Progress Report is true.