Aurora Cannabis Increases Cornerstone Investment in Cannabis Retailer Choom with Additional $20,000,000

November 15 20:25 2018
Aurora secures right to increase ownership to 40% of Choom at $2.75 per common share

Video Link: http://www.youtube.com/embed/qF_QgYlUK6Y

DMONTON and VANCOUVER, Nov. 14, 2018 – Aurora Cannabis Inc. (“Aurora”) (ACB.TO) (ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and Choom Holdings Inc. (“Choom”) (CSE: CHOO; OTCQB: CHOOF) (“Choom”) an emerging adult use cannabis company that has secured one of the largest retail networks in Canada, are pleased to announce that the companies have completed a non-brokered private placement of a debenture (the “Offering”) in the principal amount of $20,000,000 in Choom by Aurora, convertible into common shares of Choom (“Common Shares”) at a conversion price of $1.25 per Common Share, with a four year maturity date. Aurora has also secured the right to acquire up to 40% of the Company at $2.75 per Common Share. 

Choom is currently developing a network of retail stores which will feature a curated selection of products from various licensed producers with a strong focus on elevated customer experiences. Choom has secured the rights to 45 retail opportunities across Western Canada, rapidly expanding its commercial presence in highly strategic locations. This includes a total of 45 applications submitted, with 27 development permits and 18 building permits received from the various municipalities. In all cases the retail opportunities are subject to the necessary provincial and municipal government approvals. 

With the investment from Aurora, Choom intends to accelerate its sophisticated retail channel expansion in the Canadian adult use market, and is committed to establishing Choom as a dominant national cannabis retail brand. 

“Choom has developed a strong brand identity that radiates throughout its developing network of retail stores, which is well aligned with Aurora’s overall adult usage strategy,” said Terry Booth, CEO of Aurora. “Through this strategic investment, Aurora further diversifies its retail strategy, with additional retail opportunities across Western Canada, and future potential opportunities in the Ontario market. We are pleased to increase our stake in Choom and support them as they execute on introducing their unique retail brand to Canadian cannabis consumers.” 

Chris Bogart, President & CEO of Choom, added, “This is a transformational investment from Aurora, one of the world’s leading cannabis companies, that helps accelerate our growth and expand our retail footprint to be one of best positioned and largest retailers in the country. Aurora’s continued confidence and investment allows Choom to provide high quality cannabis to a broader market of consumers across the entire country and expedite our expansion and the roll out of store openings.”

The Offering is an unsecured convertible debenture (the “Debenture”) maturing in four years (the “Maturity Date”), convertible into Common Shares: (i) at the option of Aurora, any time prior to the Maturity Date at a conversion price of $1.25 per Common Share, subject to a minimum conversion amount of $5,000,000, and (ii) at the option of Choom any time after the hold period has expired and the volume weighted average trading price (“VWAP”) of the Common Shares on the Canadian Securities Exchange (the “Exchange”) is $3.00 or more for a period of 10 consecutive trading days. 

The Debenture is non-transferrable and bears an annual interest rate of 6.5% calculated semi-annually, payable annually in arrears on the anniversary date.  Aurora may elect to receive interest payments in Common Shares in lieu of cash at a price per Common Share equal to the VWAP of the Common Shares on the Exchange for the 20 trading days ending prior to the date on which such interest payment is due. 

The proceeds will be used by Choom for working capital and general corporate purposes. 

About Aurora 

Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 19 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution. 

About ChoomTM 

Choom™ is an emerging adult use cannabis company that has secured one of the largest retail networks in Canada. The Choom brand is inspired by Hawaii’s “Choom Gang” — a group of buddies in Honolulu during the 1970’s who loved to smoke cannabis — or as the locals call it, “Choom”. Evoking the spirit of the original Choom Gang, our brand caters to the Canadian adult use market with the ethos of cultivating ‘Good Times with Good Friends’. Choom™ is focused on delivering an elevated customer experience through our curated retail environments, offering a diversity of brands for Canadians across a national retail network. 

Forward-looking Information: 

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information relates to management’s future outlook and anticipated events or results, and include statements or information regarding the future plans or prospects of the Company. Forward-looking information in this news release includes statements about: Aurora acquiring up to 40% of the Company; developing a network of retail stores which will feature a curated selection of products from various licensed producers; accelerating Choom’s sophisticated retail channel expansion in the Canadian adult use market; establishing Choom as a dominant national cannabis retail brand; becoming one of best positioned and largest retailers in the country; Aurora’s continued confidence and investment in Choom; providing high quality cannabis to a broader market of consumers across the entire country; expediting expansion and the roll out of store openings; future potential opportunities in the Ontario market; and using the proceeds of the Offering for working capital and general corporate purposes. 

With respect to the forward-looking information contained in this news release, Aurora and Choom have made numerous assumptions regarding, among other things: receipt of all necessary regulatory approvals for the Offering; necessary provincial and municipal government approvals; continued investment from Aurora; continued demand for Choom’s products; and continued economic and market stability. While the companies consider these assumptions to be reasonable, these assumptions are.

Media Contact
Company Name: Choom Holdings Inc.
Contact Person: Chris Bogart, President & CEO
Email: Send Email
Phone: 604.683.2509
Country: Canada
Website: https://choom.ca/