VANCOUVER — 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.
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.