Closes Prospectus Offering and Recapitalization Transactions Choom just announced the closing of the debt restructuring, which was previously announced back in May.
- $25.9M of outstanding debt ($21.8M owed to Aurora Cannabis)
- $ACB will receive 79,754,843 common shares (19.9% ownership of $CHOO
- Aurora will have a convertible debenture in the aggregate principal amount of $6.0 million maturing on December 23, 2024
- Choom and Aurora have also agreed to use commercially reasonable efforts to enter into a services agreement where Choom would operate retail cannabis stores on behalf of Aurora
The debt restructuring is actually a very beneficial thing for $CHOO. It shows that $ACB, a $2B company, has confidence that $CHOO will continue growing and provide a good ROI for them. Additionally, they’ll focus more on opening new stores and improving services since they now have less interest in payments for the debt. The stock may have been diluted, but with triple-digit YOY revenue growth, I’m holding my shares long and strong!
More info about it from the news release: https://www.newswire.ca/news-releases/choom-announces-closing-of-prospectus-offering-and-recapitalization-transactions-806638101.html
The current share price is at $0.07, with a market cap of $23M. It's still extremely undervalued at these levels.