Vancouver, BC – April 03, 2020– Choom Holdings Inc. (the "Company" or "Choom") (CSE: CHOO; OTCQB: CHOOF), an emerging adult use cannabis company that has secured one of the largest national retail networks in Canada, is pleased to announce Choom has completed the acquisition of the retail cannabis store (the “Niagara Store”) in Niagara Falls, Ontario (the “Transaction”). The acquisition of this store furthers the Company's continued nationwide rollout. The Niagara Store has had a robust and stable operating history* with unaudited gross sales of approximately $7 million for the 9.5 months since opening on June 15, 2019.
"Choom is excited to add the Niagara store to its corporately owned portfolio of stores, with its large and loyal customer base and top-tier financial performance," said Corey Gillon, Choom’s CEO. "Over the coming year, we look forward to growing our presence in the Ontario market and reaching the maximum of 10 stores per operator as quickly as possible," Mr. Gillon added. Through this transaction, Choom has made its first move toward significantly expanding its retail network in Canada's most populous province.
Consideration for the acquisition, includes cash of $2,000,000 (of which $1.45M will be funded from the cumulative operating cash flow from the Niagara Store) and $2,000,000 equivalent issued to the vendor in common shares of Choom. The Transaction was completed with the consent of the Alcohol and Gaming Commission of Ontario (AGCO) following the expiry of certain restrictions on change of control established under the rules applicable to the first cannabis retail lottery conducted by the AGCO on January 11, 2019. In connection with the Transaction, the Company acquired all of the issued and outstanding shares of 2688412 Ontario Ltd. that was wholly owned by the holder (the “Vendor”) of a cannabis retail operator licence issued by the AGCO in the first lottery.
Say hello to Choom™
Choom™ is an emerging adult use cannabis company whose mission is to establish one of the largest retail networks in Canada. The Choom brand is inspired by Hawaii's “Choom Gang”—a group of buddies in Honolulu during the 1970's who loved to smoke weed—or as the locals called it, “Choom”. Evoking the spirit of the original Choom Gang, our brand caters to the Canadian adult use market with the ethos of ‘cultivating good times’. Choom™ is focused on delivering an elevated customer experience through our curated retail environments, offering a diversity of brands for Canadians across a national retail network.
Corey Gillon CEO
Contact: Choom Holdings Inc.
Corey Gillon, CEO
T: 604.683.2509 F: 604.683.2506
Chris Bogart, President
T: 604.683.2509 F: 604.683.2506 E: firstname.lastname@example.org
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This news release contains forward-looking information relating to the Company's proposed activities and other statements that are not historical facts. Forward-looking information relates to management's future outlook and anticipated events or results, and include statements or information regarding the future plans or prospects of the Company. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. These factors include risks and uncertainties associated with or arising as a result of delays in obtaining or an inability to obtain required regulatory approvals, access to sufficient quantities of cannabis, the results of diligence investigations, the actions of third parties, the results of negotiations with third parties, developments in the cannabis sector, the ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays and other risks and uncertainties discussed in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings, including those made with the CSE and applicable Canadian securities regulators. There can be no assurance that such forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information.