SEATTLE, March 20, 2018 (GLOBE NEWSWIRE) -- CFN Media Group ("CannabisFN"), the leading creative agency and
media network dedicated to legal cannabis, announces publication of an article discussing Choom Holdings Inc. (CSE:CHOO) (CNSX:CHOO) (CHOO.CN) (OTCQB:CHOOF) and its efforts to build
out a premier recreational brand across Canada. As part of this strategy, the company recently acquired a third late-stage
cultivation applicant in British Columbia and signed a supply and financing agreement with one of the country’s largest licensed
producers, ABcann Global.
Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte,
driven by the legalization of adult-use cannabis later this year. Adult-use, or recreational cannabis is a very different market
than medical, both in terms of the products used and the consumers involved. Identifying consumer brands that may have success in
the upcoming market is a puzzle that existing licensed producers are frantically trying to solve as they transition to the larger
opportunity presented by adult-use legalization.
Acquiring a Cultivation License
Choom™ recently entered into a definitive agreement to acquire International Tungsten Inc., which has an
agreement in place to acquire Medijuana Specialty Products Inc. (MSP), which is an applicant under the Access to Cannabis for
Medical Purposes Regulations (“ACMPR”) that has submitted its Affirmation of Readiness evidence package to Health Canada. The
company expects to receive a cultivation license from Health Canada within the next several weeks.
Management believes that the acquisition will create significant synergies in operational infrastructure and
rapidly accelerate the company’s timeline toward achieving a sales license, as well as improve and advance its operational scale
with increased production capacity. The move marks a key milestone in Choom’s long-term plan to become a fully-integrated cannabis
company representing a premier lifestyle brand across Canada, focused on the upcoming recreational market.
MSP plans to execute its plan in three phases:
- Phase 1: Current Facility - The company is in the process of obtaining a cultivation license at the facility where the
buildings are at operational readiness. A positive review of an Affirmation of Readiness (already submitted by MSP) usually leads
in short order to an ACMPR cultivation license. Management expects to receive a sales license during the third quarter of this
year.
- Phase 2: Second Facility - The company plans to expand the existing production capacity by building an additional 19,629 sq.
ft. facility that would bring the total footprint to over 29,000 sq. ft. of production capacity.
- Phase 3: Third Facility - The company plans to expand production by building two additional facilities with 700,000 sq. ft.
of production capacity. The new facility will be a hybrid model of indoor and greenhouse production, and bring total production
to 751,600 sq. ft. The building expansion fits within zoning regulations and planning is underway.
MSP’s team also brings a wealth of experience in the Choom™ family. Michael Forbes has over 14 years of
experience in pharmaceuticals and healthcare, having created and operated a chain of nine pharmacies and eight medical clinics. Ian
Laing has over 20 years of experience in real estate and construction managing multi-million dollar projects. And, Neil Michael
MacLean has over 20 years of experience in defense and electronics.
ABcann’s Strategic Investment
Choom™ also announced that it has completed a subscription receipt financing for $7.0 million in gross proceeds,
including $4 million from ABcann Global Inc. (TSX-V:ABCN) (OTCQB:ABCCF). The move was concurrent with the execution of the
aforementioned definitive agreement to acquire Medijuana Specialty Products Inc. The two companies also entered into a supply
agreement in conjunction with the financing deal.
"ABcann remains committed to becoming a global leader in the cannabis sector. With our strategic investment in
Choom, we are signaling a strong move into the recreational market with one of the premium recreation brands in Canada,” stated
Barry Fishman, CEO of ABcann. "With our strong cash position of approximately $135,000,000, ABcann intends to pursue other
accretive opportunities to diversify our industry presence. We look forward to working with and assisting the Choom team with the
supply of our premium grown products."
The supply agreement will help Choom™ immediately roll out its products across a wide range of retail outlets,
while enabling ABcann to rapidly expedite the development of recreational products. The win-win partnership could help both
companies enhance their market position and ultimately generate more value for shareholders over the long run.
Choom™ Is Putting It All Together
With a plan for sophisticated yet relaxed, high-end retail stores that welcome even the curious cannabis consumer, and an investment
group already laying the groundwork for stores in British Columbia, Choom™ is proceeding full throttle
with the goal of becoming a dominant consumer brand. While the company develops its own supply through its three licensed producer
applicants, agreements like the one with ABcann provide assurance of product and capital to further expand Choom’s operations. Keep
an eye out as Choom™ brings the good vibes and relaxed lifestyle from the Hawaiian Islands directly to Canadian cannabis
consumers.
Please follow the link to read the full article: http://www.cannabisfn.com/choom-cuts-deal-abcann-jumpstart-retail/
For more information, visit the company’s website at www.choom.ca.
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help
marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies
and brands in the US and Canada rely on CFN Media to grow and succeed.
Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany
Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your
hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8
Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link
text on your iPhone: http://www.cannabisfn.com
Disclaimer
CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult
with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information
provided on http://www.cannabisfn.com (the ‘Site’) is either original financial news or paid
advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm
enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other
editorials for advertising such companies. We are not an independent news media provider. We make no warranty or
representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly
and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As
such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted.
CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along
with financial and corporate news.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been
hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
Frank Lane
206-369-7050
flane@cannabisfn.com
