British Columbia-based fully-integrated cannabis company Choom Holdings (CSE: CHOO) (OTCQB: CHOOF), together with Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB), this morning announced that the companies have completed a non-brokered private placement of a debenture in the principal amount of $20,000,000 in Choom by Aurora, convertible into common shares of Choom at a conversion price of $1.25 per share, with a four year maturity date. The unsecured convertible debenture is subject to a minimum conversion amount of $5,000,000. Following the expiration of the hold period, if the volume weighted average trading price (“VWAP”) of the common shares on the CSE is $3.00 or more for a period of 10 consecutive trading days, Choom has the option to convert the unsecured convertible debenture into common shares. The non-transferrable debenture bears an annual interest rate of 6.5% calculated semi-annually, payable annually in arrears on the anniversary date. Aurora may elect to accept interest payments in common shares rather than cash. Additionally, Choom issued to Aurora 95,760,367 common share purchase warrants at an exercise price of $2.75, increasing Aurora’s pro rata equity interest in Choom to approximately 40%, for no additional consideration. The warrants are exercisable by Aurora until November 02, 2020. All securities issued are subject to a four month hold period following the offering’s closing date. This investment from Aurora enables Choom to fast-track its retail channel expansion in the Canadian adult use market.
“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,” Choom Holdings President & CEO Chris Bogart stated in the news release.
To view the full press release, visit http://cnw.fm/2iB3Q
SAY HELLO TO CHOOM
The Choom brand is inspired by Hawaii’s “Choom Gang”- a group of buddies in Honolulu during the 1970’s who loved to smoke weed—or as the locals called it, choom. Evoking the spirit of the original Choom Gang, the brand is synonymous with cultivating good times with good friends. The company is focused on delivering an elevated customer experience through its curated retail environments, high-grade handcrafted cannabis supply, and a diversity of brands for the Canadian recreational consumer. For additional information on Choom™, please visit www.choom.ca
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