GREY:CHOOF - Post by User
Comment by
blackroosteron May 12, 2020 4:23pm
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Post# 31019054
RE:RE:CHOO Making Huge Revenu. More Stores .. Essentiel Products
RE:RE:CHOO Making Huge Revenu. More Stores .. Essentiel ProductsThere is some interesting accounting going on. Clarity acquisition by Choom was completed in October of 2019. Finalized on October 28th i believe. I'd imagine the revenue deferral will work similar to the Niagra store. Niagra store (since opening) generated around 9 million dollars. This money wasnt realized as revenue by choom, but was used to pay for (in part) the store itself.
Point being ... the overlap causes revenue numbers to skew. I think the first real quarter we will see existing stores contributing to Chooms revenue will be April-June. But, I do believe an uptick will be seen in Jan-March. There is a lot of dilutive action going on as well, until they ramp revenue to the point of profitability, this might continue.
The final deal with Clarity was (finalized Oct 28 2019):
a) a cash payment of $2,000,000 (paid) (Note 21);
b) the issuance of 5,000,000 common shares (the “Option Shares”) to all of the shareholders of Clarity pro-rata (issued), subject to escrow release over two years (Note 18)
c) the issuance of an additional 1,000,000 common shares to a certain shareholder (issued) (Note 21);
d) the issuance of 200,000 common shares for Clarity’s legal services (the “Counsel Shares”); The Counsel Shares do not form part of the Option Price or the Purchase Price.