Canadian licensed cannabis producer Aurora Cannabis (OTC:ACBFF) will be the lead investor in Choom Holdings Inc.’s private placement.
Aurora (OTC:ACBFF) announced the news on Wednesday, saying it intends to complete a $7 million investment in Choom Holdings. As part of the deal, Aurora will receive 9,859,155 common shares from the company’s treasury with a price of $0.71 a share. The investment will represent an 8% ownership interest.
“Our investment in a consumer-focused brand with a strong retail strategy offers Aurora additional growth opportunities through supply, retail and distribution to the adult consumer use market, and provides a good example of the functioning of Aurora Pro,” remarked Terry Booth , CEO of Aurora.
He also added, “Choom has established a well-developed brand, supported by deep roots within the British Columbia cannabis community and a passion for high-grade, handcrafted product. We’re excited to strengthen our relationship with the team at Choom and help amplify their market reach as they continue to execute on their differentiated craft growing philosophy and their unique retail strategy.”
President and CEO of Choom Holdings, Chris Bogart, commented, “Teaming up with what we consider to be the most dynamic licensed producer with exceptional strength throughout the entire cannabis value chain, we believe, will prove to be a key growth accelerator for Choom. Both companies have a very strong focus on the entire customer experience, key in establishing exceptional brands.”
He continued, “This investment by Aurora is a strong signal to our markets and our shareholders that Choom’s strategy meets with the highest standards in the industry.”
According to Choom Holdings’ press release, “The placement is being made under applicable exemptions from prospectus requirements and may include one or more subscriptions by insiders and other existing shareholders of the Company. A portion of this placement may be subject to finder’s compensation or commissions. All of the securities issued in connection with the placement will be subject to a four month hold period under securities laws.”
Inspired by the Choom Gang, Choom Holdings was created by a group of friends in Hawaii during the 1970’s. Four decades later the company is bringing the spirit of Hawaii to Canada and offers high-grade handcrafted Cannabis supply, and a diversity of brands for the Canadian recreational consumer.
Up to now, Choom Holdings has secured rights to 17 retail leases in highly defensible locations throughout Alberta, Canada and also has 7 leases secured in BC, Canada.