Choom Acquires Alberta Retail Stores (OTCQB: CHOOF CSE:CHOO)

Choom™ (OTCQB: CHOOF; CSE: CHOO) has announced that they have signed a definitive agreement to acquire the entire Clarity Cannabis Retail store network of 30 Stores in Alberta. This deal establishes Choom’s footprint in $1 Billion+ Potential Alberta Legal Marijuana Market.

Finally, we have “Clarity” on Choom’s retail “opportunities” in Alberta, putting an end to speculation on what Choom defines as opportunities in their Race for Retail in Canada. 

• 3 Open Stores 
• 9 Stores fully built-out and waiting for Approval 
• In addition to the three licensed cannabis retail stores, the acquisition includes:
   
• All 30 leases secured and applications submitted to the AGLC by Clarity.  
• 11 development permits awaiting construction 

Choom expects the licenses for the remaining completed stores to be granted soon after the AGLC starts to grant additional retail licenses.  Upon approval from the AGLC, all of the Clarity retail stores and retail opportunities will be re-branded under the “Choom Cannabis Co.” name.  

READ RELEASE BELOW: 

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 has entered a definitive agreement (“Purchase Agreement”) with Clarity Cannabis MD Holdings (“Clarity”) and its shareholders, to acquire 30 retail locations, three of which are licensed with the Alberta Gaming, Liquor & Cannabis Commission (“AGLC”). Clarity has successfully progressed through AGLC licensing and is operating the following three stores in the legal adult use cannabis market in Alberta and is awaiting licences for the following seven cannabis retail stores.

CANNABIS RETAIL STORES OPENED

•    High River, AB

•    Cold Lake, AB 

•    Red Deer, AB

CANNABIS RETAIL STORES COMPLETED

 

•    Cold Lake #2, AB – awaiting licensing 

•    Lloydminster, AB – awaiting licensing 

•    Drumheller, AB – awaiting licensing 

•    Brooks, AB – awaiting licensing 

•    Medicine Hat, AB – awaiting licensing 

•    Westlock, AB – awaiting licensing 

•    Camrose, AB – awaiting licensing 

•    Camrose #2, AB – awaiting licensing

•    Lethbridge, AB – awaiting licensing 

In addition to the three licensed cannabis retail stores, the acquisition includes all 30 leases secured and applications submitted to the AGLC by Clarity.  Clarity currently has 11 development permits awaiting construction, with 6 stores to commence construction, and 9 stores completed construction.  

Choom expects the licenses for the remaining completed stores to be granted soon after the AGLC starts to grant additional retail licenses.  Upon approval from the AGLC, all of the Clarity retail stores and retail opportunities will be re-branded under the “Choom Cannabis Co.” name.  The completion of the acquisitions of the retail stores and retail opportunities will be dependent on the timing of the receipt of all necessary provincial and municipal approvals.  The Purchase Agreement has been structured to permit Choom to acquire Clarity itself or all of the thirty retail stores and retail opportunities on a location-by-location basis, to provide flexibility to obtain timely receipt of necessary provincial and municipal approvals on a location-by-location basis or through the acquisition of Clarity itself.

“We are thrilled to welcome Clarity into the Choom brands portfolio through this acquisition,” states Chris Bogart, President & CEO of Choom.  “Clarity has been successfully operating in Alberta since December and has submitted applications across the province. This transaction gives us a strong foothold in the Alberta retail landscape.  Moving forward we will be working diligently to maximize our retail footprint Canada wide, and this transaction helps us to achieve that goal.”

Purchase Terms

 

Pursuant to the Purchase Agreement, among other things, Choom will

• pay $2,000,000 to the principal shareholder of Clarity (the “Principal”) and issue 6,000,000 Choom Shares to all of the shareholders of Clarity, subject to escrow release over two years;
• pay $500,000 to the Principal and issue 2,500,000 Choom Shares to all of the shareholders of Clarity, subject to escrow release over two years, once Choom acquires Clarity or acquires one of the Clarity retail stores; and
• issue 2,500,000 Choom Shares to all of the shareholders of Clarity, subject to escrow release over two years, once the AGLC approves Choom to either acquire one of the Clarity retail stores or to operate any cannabis retail store in Alberta.

Choom will issue 8,867,000 Choom Shares and pay $2.5 million to the Principal in connection with the acquisition.  As the Principal is also a director of Choom, the acquisition constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101”), however, the transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the consideration and the transaction will not exceed 25% of the Company’s market capitalization.  A material change report in relation to this transaction will be filed less than 21 days before the issue of the majority of the Choom Shares and cash consideration in accordance with the terms of the Purchase Agreement but at least 21 days prior to closing.
 
SAY HELLO TO CHOOM™

Choom™ is an emerging adult use cannabis company that has secured 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 with Good Friends’. 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. 

“Chris Bogart”

President & CEO

Contact: Choom Holdings Inc.

 

Chris Bogart

President & CEO

T: 604.683.2509

F: 604.683.2506

E: chris@choom.ca

 

Alex Porporo

Investor Relations

T: 604.683.2509 Ext. 231

F: 604.683.2506

E: alex@choom.ca

 

Please see full disclaimers at www.TheSeedInvestor.com applicable to all content provided by TSI, wherever published or re-published: http://theseedinvestor.com/about/disclaimer

Disclaimer: This release/advertorial is a commercial advertisement and is for general information purposes only. This release/advertorial does not constitute an offer or solicitation to buy or sell any securities or individualized investment advice. This is a native advertisement, meaning it is an informational paid marketing piece. THESEEDINVESTOR.com (TSI) makes no recommendation that the securities of the companies profiled or discussed on this website should be purchased, sold or held by viewers that learn of the profiled companies through our website. Please review all investment decisions with a licensed investment advisor. TSI receives payments ranging from approximately $25,000 to $150,000 to publish and/or distribute advertisements on behalf of a company. TSI retains any excess sums after expenses as its compensation. TheSeedInvestor.com and its owners, operators and affiliates may benefit from any increase in the share prices of the profiled companies. TheSeedInvestor.com may be paid for services using options or free-trading shares. TheSeedInvestor.com and/or its owners, operators and affiliates may be selling shares of stock at the same time the profile (or other information) is being disseminated to potential investors; TheSeedInvestor.com will not advise when it or its affiliates decide to sell. Investors must make all investment decisions based on their own judgment of the market and the particular securities.

This advertorial contains forward-looking statements that involve risks and uncertainties. This advertorial contains or incorporates by reference forward-looking statements, including certain information with respect to plans and strategies of the featured company. As such, any statements contained herein or incorporated herein by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believe(s),” “anticipate(s),” “plan(s),” “expect(s),” “project(s),” “will,” “make,” “told,” “could,” “might,” and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause actual events or actual results of the company to differ materially from these indicated by such forward-looking statements. Certain statements contained herein are forward-looking statements as defined in Section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Such statements include, without limitation, statements regarding business, financing, business trends, future operating revenues and expenses. There can be no assurance that such expectations will prove to be correct. Investors are cautioned that any forward-looking statements made by the company, or contained in this advertorial are not guarantees of future performance, and that the issuer’s actual results may differ materially from those set forth in the forward-looking statements. We undertake no obligation to update any statements made herein except as required by law. Differences in results can be caused by various factors including, but not limited to, the company’s ability to be able to successfully complete planned funding agreements, to successfully market its products in competitive industries or to effectively implement its business plan or strategies. To reiterate, information presented in this advertorial contains “forward-looking statements.” Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. More information on the company may be found at http://www.sec.gov where readers can review all public filings submitted by the company. TheSeedInvestor.com is not a certified financial analyst or licensed in the securities industry in any manner. The information in this advertorial is subjective opinion and may not be complete, accurate or current and was paid for, so this could create a conflict of interest.