Aurora Cannabis Inc. (NYSE: ACB) announced with Choom Holdings Inc. (OTCQB: CHOOF) that the two companies have completed a privately placed debenture in the form of a $20,000,000 investment by Aurora Cannabis into Choom. The principal investment, which is convertible into Choom common shares, is at a conversion price of $1.25 per share at a 4 year date of agreement close maturity date. Aurora Cannabis also secured the company’s rights to acquire up to 40% of the company at a fixed price of $2.75 per common share of Choom.
Aurora Cannabis’ Chief Executive Officer, Terry Booth, said, “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”. The CEO of Aurora Cannabis also went on to say that this investment diversifies our retail strategy with an opportunity for expansion into parts of Western Canada and the Ontario Market.
Choom Holdings Inc. holds one of the largest retail chain networks of recreational adult use cannabis products in Canada. The company’s current goal is to develop a network of retail stores that feature a specific selection of cannabis products from licensed producers. The company also holds 45 submitted applications with 27 development permits and 18 building permits already received from the local municipalities.