$CHOO has announced that it has entered into a series of agreements with existing debenture holders to restructure (the "Debt Restructuring") approximately $25.9 million of the Company's outstanding debt, including approximately $21.8 million owing to Aurora Cannabis Inc.
Highlights
Recapitalization transaction significantly reduces debt obligations, allowing the Company to focus on growth and expansion
Launch of a marketed unit offering to raise up to $5.0 million
Restructuring of Choom's debt held by Aurora including portion converted to equity, subject to completion of minimum equity capital raise
Debt terms include maturity extensions and payment-in-kind interest to allow Choom to allocate all resources to growth strategy
CEO of $CHOO Cory Gillon said of the news, "This debt restructuring transaction dramatically improves Choom's financial position and allows us to focus on the expansion of our store portfolio across the country. This realignment of our existing debt through this restructuring with Aurora dramatically reduces the company's borrowing obligations so we can continue delivering on our corporate growth objectives for 2021 and beyond.”
Great news for $CHOO and a definite catalyst for growth. Keep an eye. Current MC is only $30.86M.
More here
https://www.newswire.ca/news-releases/choom-announces-recapitalization-transactions-807133118.html