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Vancouver, BC – January 18, 2017 – Choom™ (CSE: CHOO; OTCQB: CHOOF) is pleased to announce it has signed a Letter of Intent 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.
Acquisition Terms
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 CHOOM™
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, Choom™ 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.
“Chris Bogart”
President & CEO
Contact: Choom Inc.
Chris Bogart
President & CEO
T: 604.683.2509
F: 604.683.2506
E: chris@choom.ca |
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