VANCOUVER, Jan. 18, 2018 /CNW/ - Choom™ (CSE: CHOO; OTCQB: CHOOF) is pleased to announce it has signed a Letter of Intent ("LOI") to acquire its second, advanced-stage cannabis production licence applicant ("Target") under Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR). The target, which is located on Vancouver Island, B.C. is at the "Confirmation of Readiness Stage" within the Health Canada "ACMPR" application process.
Chris Bogart, President and CEO states, "we are very pleased Choom™ has increased its total production capacity with the addition of our second advanced stage applicant. Upon completion of the tenant improvements, the target will submit its evidence package to Health Canada and it is expected a cannabis cultivation license will soon follow. This acquisition further demonstrates our commitment to building a national premium recreation brand.
Pursuant to the Acquisition, the Company will acquire all of the shares of Target, which will become a wholly-owned subsidiary of the Company, and the Company will issue to the Target shareholders, based on their pro rata holdings, the following:
- on the closing date, 8, 000, 000 common shares into escrow, 10% of which will be released on the Closing and the balance over 24 months; in equal installments every 6 months, subject to regulatory approvals.
- $2,000,000 in common shares following receipt by the Target of its cannabis sales license under the ACMPR based on the then trading price of Choom's common shares (10-day VWAP).
The definitive share purchase agreement will include customary conditions, including obtaining all necessary corporate approvals and applicable exchange acceptances. The Target acquisition is arms-length.
SAY HELLO TO CHOOMTM
Choom™ was created for and inspired by the Choom Gang; a group of buddies in Honolulu during the 1970's who loved to smoke weed—or as the locals called it, "Choom". Now, after four decades, ChoomTM is bringing the spirit of Hawaii to the Okanagan and Canada. We're planting our flag in the rapidly growing legal cannabis industry in Canada with our own brand of high-grade handcrafted herb.
President & CEO
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains forward-looking information relating to the Company's proposed activities and other statements that are not historical facts. 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. Although management of the Company has 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 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 and 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 Company's interim and most recent annual financial statement or other reports and filings, including the Company's Listing Statement, made with the applicable Canadian securities regulators. There can be no assurance that such 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.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
SOURCE Choom Holdings Inc.
For further information: Choom Inc., Chris Bogart, President & CEO, T: 604.683.2509, F: 604.683.2506, E: [email protected]