The good news keeps rolling in for Choom Holdings Inc. (CSE: CHOO, OTCQB: CHOOF, Forum).
Since the beginning of May, Canada’s premier cannabis producer notched several milestones:
This week, the Company announced some of its biggest news yet: Closing a non-brokered $10.1 million private placement. CHOO issued 14,225,352 shares in this placement and the cornerstone investor of this offering was industry heavyweight Aurora Cannabis (T.ACB) with a lead order of $7 million. The private placement closed earlier than expected and raised $100,000 beyond what the Company initially planned for.
Aurora has been providing major investments into a number of cannabis companies recently, and this latest investment into Choom will serve to further enhance its portfolio. This relationship between Choom and Aurora sprouted through the Aurora Pro platform, which ACB uses to deploy a number of services to craft growers in the industry like Choom, who are involved in cultivation, genetics, regulatory consultancy and market development. Choom’s past success stood out and Aurora saw an opportunity to assist the Company face any entry barriers to Canada’s adult-use cannabis market. This investment will offer growth opportunities for Aurora. CEO Terry Booth stated that Choom can provide supply, retail and distribution to the adult-use market.
“Choom has established a well-developed brand, supported by deep roots within the British Columbia cannabis community and a passion for high-grade, handcrafted product. We're excited to strengthen our relationship with the team at Choom and help amplify their market reach as they continue to execute on their differentiated craft growing philosophy and their unique retail strategy.”
He also referred to this relationship as proof that Aurora Pro works for the industry, adding that working with Choom offers Aurora additional growth opportunities through supply, retail and distribution to the adult consumer-use market.
Choom CEO Chris Bogart stated that this financing represents a massive leap in his Company’s growth and development of its recreational retail strategy, further positioning Choom’s retail presence across Canada.
"Teaming up with what we consider to be the most dynamic licensed producer with exceptional strength throughout the entire cannabis value chain, we believe, will prove to be a key growth accelerator for Choom. Both companies have a very strong focus on the entire customer experience, key in establishing exceptional brands. This investment by Aurora is a strong signal to our markets and our shareholders that Choom's strategy meets with the highest standards in the industry."
In addition to Choom’s 17 retail leases throughout Alberta awaiting approval, the Company also has seven leases secured in British Columbia and intends to play a key role in Saskatchewan’s retail market with a strategy in place to develop its presence there. This is a part of Choom’s retail store and provincial licensing strategy, with more than 40 applications currently in process.
The Company is pushing ahead with its vision to develop a finely-tuned portfolio of high-grade cannabis strains that each possess the ideal characteristics for craft growing. Its specific target is the premium segment of the adult consumer-use market. With an elevated in-store customer experience.
The federal government is putting the final touches on Bill C-45, the Cannabis Act, with estimates that the recreational market would be open for business by the end of summer 2018. As it still remains unclear what restrictions the industry will face with regard to marketing and promotion of cannabis products, players like Aurora and Choom will need to form working relationships to ensure their product maintains national exposure.
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FULL DISCLOSURE: Choom Holdings Inc. is a paid client of Stockhouse Publishing.