Choom™ Announces Closing of Specialty Medijuana Products
Choom™ (CSE: CHOO; OTCQB: CHOOF) (the “Company” or “Choom“), an emerging fully-integrated cannabis company, is pleased to announce that today it is closing its acquisition (the “Transaction“) of Specialty Medijuana Products Inc. (“SMP“) pursuant to an amended and restated amalgamation agreement among Choom, Arbutus Brands Inc. and International Tungsten Inc. The Company announced the definitive agreement to effect the Transaction in a news release on March 19, 2018 .
“We are excited to add SMP to the Choom group of companies under our Arbutus Brands subsidiary,” states Chris Bogart , President and CEO for Choom. “Arbutus Brands will add value to the entire Choom supply chain, from seed to sale. The synergies among our Choom companies will make for an extremely bright and exciting future as we approach the legalization of the recreational cannabis market in Canada .”
The benefits of the Transaction for Choom™ include that it will:
- Enable Choom™ to acquire SMP, which has submitted its AOR evidence package to Health Canada and expects to receive its cultivation license at any time;
- Create significant synergies in operational infrastructure and expertise across multiple disciplines to drive strong growth potential;
- Significantly improve and advance operational scale and production capacity; and
- Strengthen and accelerate Choom’s strategic direction as a fully-integrated cannabis company, representing a premiere lifestyle brand in Canada .
Specialty Medijuana Products Inc.
SMP, based in Canada’s beautiful Sooke, BC , is committed to becoming a Licensed Producer of cannabis under the ACMPR. SMP was founded by a seasoned business team with extensive experience in growing cannabis, the operation of pharmacies, medical clinics, land development and construction. The SMP team, in conjunction with Choom’s™ management team, plan to build upon their collective past business successes and leverage their expertise to create Canada’s premiere lifestyle brand in adult-use cannabis.
SMP’s marijuana production growth strategy is expected to be executed in three phases:
- Phase I – First Facility: AOR evidence package submitted to Health Canada: Building is at operational readiness with state-of-the-art-facilities, consistent with ACMPR standards, and SMP expects to receive its cultivation license from Health Canada in Summer 2018.
- Phase II – Second Facility: Expand existing production by constructing an approximately 19,600 sq. ft. facility that will bring total production capacity to over 29,000 sq. ft. in the combined facility footprint.
- Phase III – New Facility: Expand existing production by constructing two additional buildings that will increase the total building gross square footage to just over 700,000 sq. ft. This new facility, a hybrid model of indoor and greenhouse production, is expected to bring Choom’s total production capacity to over 700,000 sq. ft. The Municipality of Sooke has already approved cannabis production zoning for the site. The building expansion fits within the zoning regulations and final planning for this expansion is currently underway.
The Arbutus Team
Arbutus’s team has the experience to ensure that they successfully navigate the ACMPR licensing process and deliver on their vision. The team includes from SMP:
Named one of 2017’s Top Entrepreneurs by Quantum Shift, Michael has a long history of creating and operating successful companies in the pharmaceutical and health care industries. Over the course of 14 years in business, he has created and operated a chain of nine pharmacies and eight medical clinics, including three methadone clinics, employing over 160 people.
This expertise led to him being nominated to help create the procedures for the College of Pharmacists of British Columbia in 2010. His expertise in creating standard operating procedures in the pharmaceutical space is vital in ensuring proper drug dispensing to the public. This experience is crucial in creating trust with the consumer and the industry at large. He holds an Honorary Degree in Business from the Ivey School of Business and a Bachelor of Science, Pharmacy. Mr. Forbes will be joining the Choom™ Board of Directors upon the completion of the Transaction.
Ian has over 20 years of experience in real estate, development and construction in a range of areas, including apartment buildings, custom home construction, land development, rezoning, condominiums, commercial and industrial buildings.
Since 1998, Ian has consistently proven his ability to build and grow multimillion-dollar projects from the ground up. He has a background in Urban Land Economics from the University of British Columbia and a commitment to building with integrity. Ian is currently running four companies and has experience in the recreational space with Salt Spring Island Brewery. This experience is expected to benefit the development of SMP’s business practices and the anticipated build out and scaling of facilities. SMP will rely on this expertise as it grows its facilities and expands operations.