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Choom Holdings amends convertible debenture
2020-06-24 20:33 ET - News Release
Mr. Corey Gillon reports
CHOOM AMENDS AND RESTATES CONVERTIBLE DEBENTURE WITH LENDER AS IT EXECUTES ON ITS BALANCE SHEET OPTIMIZATION STRATEGY
Choom Holdings Inc. has reached an agreement with an arm's-length lender to amend the terms of its non-transferable unsecured convertible debenture issued in November, 2018, and maturing November, 2022. The convertible debenture bears interest at a rate of 6.5 per cent per annum on the outstanding principal sum.
Pursuant to the terms of an amended and restated convertible debenture dated June 24, 2020, Choom has agreed, among other things, to grant to the lender a second-ranking security interest over all of its present and after-acquired property. The security interest will be governed in accordance with the terms and conditions of a security agreement between Choom and the lender dated June 24, 2020. Among other amendments, the amended and restated debenture includes amendments reflecting (i) a 90-day exclusivity period during which the lender has agreed not to sell, transfer or assign its indebtedness to any third party, (ii) a right of first refusal in favour of Choom in respect of any future proposed sale, transfer or assignment of the indebtedness by the lender, and (iii) a reduction of the conversion price of the debenture from $1.25 to 65 cents per share.
"Choom is pleased to have reached a mutually beneficial agreement with our lending partner," Corey Gillon, chief executive officer, states. "We continue to receive the support of shareholders and convertible debenture investors who support the company and its business plan. Choom is driving growth and expansion as we continue to execute on our business plan to become a leading national cannabis retailer in Canada."
About Choom Holdings Inc.
Choom is a fast-expanding retail cannabis company which has established one of the largest store networks in Canada. The Choom brand is inspired by Hawaii's Choom Gang, a group of buddies in Honolulu during the 1970s who loved to smoke weed or, as the locals called it, Choom. Evoking the spirit of the original Choom Gang, the brand caters to the Canadian market with the ethos of cultivating good times. Choom is focused on delivering an elevated customer experience through its curated retail environments, offering a diversity of brands for Canadians across a national retail network.
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