Choom™ (CHOO.CN) (CHOOF) (the “Company”) is pleased to announce a non-brokered private placement for gross proceeds of up to $10,000,000 , including a $7,000,000 lead order from Aurora Cannabis Inc. The private placement will consist of up to 14,084,507 common shares at a price of $0.71 per share and is expected to close on June 18, 2018 .
“We are delighted to have the confidence and support of one of the world’s leading cannabis companies as we move forward with our retail cannabis strategy,” states Chris Bogart , President and CEO of Choom™. “With the legalization of adult use cannabis in Canada on track, Choom™ is positioning itself to be one of the leading premium choice brands for Canadian consumers. This investment by Aurora accelerates our corporate strategy of delivering a true seed to sale experience through an offering of high quality cannabis to Canadian consumers across the country.”
“Our investment in a consumer-focused brand with a strong retail strategy offers Aurora additional growth opportunities through supply, retail and distribution to the adult consumer use market, once legalized,” said Terry Booth , CEO of Aurora. “We’re excited to strengthen our relationship with the team at Choom and help amplify their market reach as they continue to execute on their differentiated craft growing philosophy and their unique retail strategy.”
The placement is being made under applicable exemptions from prospectus requirements and may include one or more subscriptions by insiders and other existing shareholders of the Company. A portion of this placement may be subject to finder’s compensation or commissions. All of the securities issued in connection with the placement will be subject to a four month hold period under securities laws.
None of the securities issued in connection with the placement 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.
SAY HELLO TO CHOOMTM
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 , our brand is synonymous with cultivating good times with good friends. We are focused on delivering an elevated customer experience through our curated retail environments, high-grade handcrafted cannabis supply, and a diversity of brands for the Canadian recreational consumer.
Aurora’s wholly-owned subsidiary, Aurora Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta , known as “Aurora Mountain”, and a second 40,000 square foot high-technology production facility known as “Aurora Vie” in Pointe-Claire, Quebec on Montreal’s West Island. In January 2018 , Aurora’s 800,000 square foot flagship cultivation facility, Aurora Sky, located at the Edmonton International Airport, was licensed. Once at full capacity, Aurora Sky is expected to produce over 100,000 kg per annum of cannabis. Aurora is completing a facility in Lachute, Quebec utilizing its wholly owned subsidiary Aurora Larssen Projects Inc.