Aurora Cannabis Increases Cornerstone Investment in Cannabis Retailer Choom with Additional $20,000,000
05 Novembre 2018 - 12:46PM
InvestorsHub NewsWire
Aurora secures right to
increase ownership to 40% of Choom at $2.75 per common
share
Edmonton, AB and Vancouver, BC
-- November 5, 2018 --
InvestorsHub NewsWire -- Aurora Cannabis Inc.
(“Aurora”) (TSX: ACB) (OTCQB: 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.
In connection
with the Offering, Choom also issued to Aurora, for no additional
consideration, 95,760,367 Common Share purchase warrants at an
exercise price of $2.75, subject to adjustments in accordance with
the terms thereof, to allow Aurora to increase its pro rata equity
interest in Choom to approximately 40% (the
“Warrants”). The Warrants are exercisable by
Aurora at any time prior to 5:00 p.m. Vancouver time on November
02, 2020.
All securities
issued in connection with the transaction will be subject to a hold
period expiring four months and one day after the Offering’s
closing date.
None of the
securities issued in connection with the Offering will be
registered under the United States Securities Act of 1933, as
amended (the “1933 Act”), and none of them may be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the 1933
Act. This news release shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there by any sale of the
securities in any state where such offer, solicitation, or sale
would be unlawful.
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.
Highly
differentiated from its peers, Aurora has established a uniquely
advanced, consistent and efficient production strategy, based on
purpose-built facilities that integrate leading-edge technologies
across all processes, defined by extensive automation and
customization, resulting in the massive scale production of high
quality product at low cost. Intended to be replicable and scalable
globally, our production facilities are designed to produce
cannabis of significant scale, with high quality, industry-leading
yields, and low per gram production costs.
Each of Aurora’s facilities is built to meet EU
GMP standards, and its first production facility, the recently
acquired MedReleaf Markham facility, and its wholly owned European
medical cannabis distributor Aurora Deutschland, have achieved this
level of certification.
In addition to the Company’s rapid organic growth and
strong execution on strategic M&A, which to date includes 15
wholly owned subsidiary companies – MedReleaf, CanvasRX, Peloton
Pharmaceutical, Aurora Deutschland , H2 Biopharma, Urban
Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed
Therapeutics, Anandia Labs, HotHouse Consulting, MED Colombia,
Agropro, Borela, and the pending acquisition of ICC Labs – Aurora
is distinguished by its reputation as a partner and employer of
choice in the global cannabis sector, having invested in and
established strategic partnerships with a range of leading
innovators, including: Radient Technologies Inc. (TSXV: RTI),
Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX:
CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings
Inc. (CSE: CHOO), Capcium Inc. (private),
Evio Beauty Group (private), Wagner Dimas (private), CTT
Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX:
CLIQ).
Aurora's Common Shares trade on the TSX and NYSE
under the symbol "ACB", and are a constituent of the S&P/TSX
Composite Index.
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.
Aurora Cannabis
Inc.
Choom Holdings Inc.
Terry Booth,
CEO
Chris Bogart, President
& CEO
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 inherently subject to significant business,
economic, competitive, market and social uncertainties and
contingencies.
Although
management of the companies have attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. These factors include: Aurora may not continue to invest
in Choom; Choom’s retail network may not expand at the anticipated
speed or scope, or at all; Choom may not use the proceeds received
from the Offering as currently contemplated; risks and
uncertainties associated with the results of diligence
investigations; developments in the cannabis sector; delays
resulting from or inability to obtain required regulatory
approvals; ability to access sufficient capital from internal and
external sources; reliance on key personnel; regulatory risks; and
delays and other risks and uncertainties discussed in the
management discussion and analysis section of the companies’
interim and most recent annual financial statements or other
reports and filings, including the companies’ Listing Statement and
other documents, made with the applicable Canadian securities
regulators and filed on SEDAR at www.sedar.com.
There can be no
assurance that such forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information. All forward-looking information herein is qualified in
its entirety by this cautionary statement, and the companies
disclaim any obligation to revise or update any such
forward-looking information or to publicly announce the result of
any revisions to any of the forward-looking information contained
herein to reflect future results, events or developments, except as
required by law.
Further
information
For
Media:
For
Investors:
Heather
MacGregor
Marc
Lakmaaker
Rob
Kelly
+1.416.509.5416 +1.647.269.5523 +1.647.331.7228
heather.macgregor@auroramj.com
marc.lakmaaker@auroramj.com rob.kelly@auroramj.com
U.S.
Investors
Phil Carlson /
Elizabeth Barker
KCSA Strategic Communications
Phone: (212) 896-1233 / (212) 896-1203
Email: pcarlson@kcsa.com /
ebarker@kcsa.com
For
Choom
Chris
Bogart
President &
CEO
T:
604.683.2509
F:
604.683.2506
E: chris@choom.ca
Alex
Porporo
Investor
Relations
T: 604.683.2509 Ext.
231
F:
604.683.2506
E: alex@choom.ca
Neither TSX or the CSE, nor their Regulation Services
Provider (as that term is defined in the policies of Toronto Stock
Exchange and the CSE) accept responsibility for the adequacy or
accuracy of this release.
Choom (CSE:CHOO)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Choom (CSE:CHOO)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
Real-Time news about Choom Holdings Inc (Canadian Securities Exchange): 0 recent articles
Plus d'articles sur Choom Holdings Inc.