Halo Collective develops Budega membership program
2022-12-14 16:45 ET - News Release
Mr. Von Rowell Torres reports
BUDEGA DISPENSARY CHAIN DEVELOPS EXCLUSIVE MEMBERSHIP PROGRAM
Halo Collective Inc. has developed an exclusive membership program for the Budega retail dispensary chain. The program will include first access to new strains and products, rebates offered based on a percentage of total spend and gifted products. The company has developed the exclusive Budega VIP program as part of its sales and marketing strategy to increase reoccurring revenues at store level. The company continues to refine its operations and build brand advocacy leading into its current expansion plans for the Budega retail division.
Budega is in development of an innovative customer loyalty program to improve customer retention and increase overall revenues. The company has been collecting customer e-mails, now with over 7,000 subscribers to the e-mail list, leading up to the launch of the new program. The Budega VIP program will consist of an exclusive membership which requires a purchase commitment monthly. The members will benefit a variety of perks including: access to new strains and products before they are officially launched, a special membership rebate with a point system and a gifted birthday joint. This model will increase customer retention and loyalty, while generating overall revenues. Budega is back by Halo, having years of experience in cultivating premium cannabis strains and management with a vast knowledge of business acumen.
Harvard Business Review reports: A company's most loyal customers are also its most profitable. With each additional year of a relationship, customers become less costly to serve. Over time, as the loyalty life cycle plays out, loyal customers even become business builders: buying more, paying premium prices and bringing in new customers through referrals. According to recent loyalty research, 49 per cent of consumers agree they have spent more after joining a loyalty program.
As the company continues to expand its retail presence, the operations will be constantly being reviewed and improved to increase profitability. "A successful loyalty program can turn regular customers into brand advocates. With growth plans in process for our retail division, we are confident the development of new programs such as this new Budega VIP program, will further strengthen our presence in the community. We are focused on building a consistent customer base throughout the California region, creating a very solid foundation for our future expansion plans," states Katie Field, chief executive officer of Halo Collective. "The Budega stores have naturally built a following due to their key locations, and this is the next step to becoming the go-to spot for premium cannabis in California."
The VIP program will be launched Q1 2023 into all Budega retail locations and will commence the marketing efforts toward promoting the program.
On Dec. 12, 2022, the company issued 933,463 compensation shares at a price of 20 cents per compensation share in satisfaction of approximately $186,692.89 in fees, payables and other compensation accrued for Q3, and payable to independent consultants of the company and certain related parties. Halo issued 714,609 compensation shares to related parties (within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions), and such issuances are considered related-party transactions for the purposes of MI 61-101. Anmol Sidhu, a director of the company was issued 214,609 compensation shares, and Shailesh Bhushan, chief administrative officer (CAO) of the company, was issued 500,000 compensation shares. Such related-party transactions are exempt from the formal valuation, and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities being issued to the related parties nor the consideration being paid by the related parties exceeded 25 per cent of the company's market capitalization. The recipients of the compensation shares and the extent of such participation were not finalized until shortly prior to the completion of the issuance described herein. Accordingly, it was not possible to publicly disclose details of the nature and extent of related-party participation in the transactions contemplated hereby pursuant to a material change report filed at least 21 days prior to the completion of such transactions. All of the compensation shares were issued pursuant to an exemption from the prospectus requirement of applicable securities laws. A portion of the of the compensation shares, 218,854, are subject to a hold period of four months and one day from the date of issuance.
The company is also announcing it intends to propose a consolidation of no less than 10:1 via special meeting. The corporation is proposing to effect the share consolidation because it believes that the new capital structure would enhance its ability to realize future financings. The corporation also believes that the new capital structure will be more appealing to prospective institutional shareholders, and will aid management in its efforts to expand and diversify the corporation's shareholder base, with the goal of establishing a trading price that more accurately reflects the underlying value and future potential of its operations.
About Halo Collective Inc.
Halo is focused on the United States west coast, where it has vertically integrated operations covering the entire value chain from seed to sale. Halo cultivates, extracts, manufactures and distributes quality cannabis flower, prerolls, vape carts, edibles and concentrates. Halo sells these products under a portfolio of brands, including Hush, Winberry Farms, its retail brand Budega, and licence agreements with FlowerShop. In addition, Halo has opened two dispensaries in Los Angeles under the Budega brand in North Hollywood and Hollywood, with plans to open one more in Hollywood in 2022.
In the non-tetrahydrocannabinol (THC) sector, Halo is expanding into health and wellness categories, including cannabidiol (CBD) and functional supplements such as nootropic nutraceuticals and non-psychotropic mushrooms. Halo, through a series of acquisitions, has product offerings in the form of beverages (H2C Beverages), dissolvable strips (Dissolve Medical), capsules (Hushrooms) and topical supplements (Hatshe) with proposed national distribution through a strategic agreement with Sway Energy Corp.
Halo has successfully acquired and integrated a variety of companies, which were subsequently reorganized to create Akanda Corp., an international medical cannabis and wellness company, of which Halo is the largest shareholder. Halo has also acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels and a discrete sublingual dosing technology, Accudab. Halo intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc. and to complete the distribution of the shares of Halo Tek Inc. to shareholders on record at a date to be determined.