- Choom Holdings (CSE:CHOO) has announced the completed acquisition of a retail cannabis store in Niagara Falls
- The acquisition is the company’s first step towards a significant expansion in Ontario
- Choom has paid the Niagara store’s vendor C$2 million in cash, and $2 million equivalent in the company’s common shares
- The transaction was completed with the consent of the Alcohol and Gaming Commission of Ontario (AGCO)
- Choom shares are trading at 9 cents per share at market open
Cannabis company Choom Holdings (CSE:CHOO) has announced the completed acquisition of a retail cannabis store in Niagara Falls, Ontario.
The acquisition is the latest development in the company’s plans for a nationwide rollout.
The Niagara store first opened in June 2019, and has had a stable operating history since that time. In those nine and half months, the store’s robust performance has included unaudited gross sales of approximately C$7 million.
Choom will pay the store’s vendor $2 million in cash, and $2 million equivalent in the company’s common shares.
In addition, Choom also acquired all issued and outstanding shares of 2688412 Ontario Ltd, which the vendor owned.
The transaction was completed with the consent of the Alcohol and Gaming Commission of Ontario (AGCO). AGCO conducted the first cannabis retail lottery in January 2019, during which it established certain rules and restrictions. The organisation could not give Choom its permission until those restrictions on change of control expired.
A month ago, Choom announced that it had submitted applications to AGCO, for authorisation of four retail locations in Ontario. The company has established itself in Alberta, with sixteen cannabis retail stores, and two more in British Columbia.
Choom has well and truly set its sights on Ontario, which it considers to be “a key strategic growth centre”. The company’s CEO, Corey Gillon, welcomed the acquisition, which is Choom’s first step towards significant expansion in Ontario.
“Choom is excited to add the Niagara store to its corporately owned portfolio of store. It has a large and loyal customer base, and top-tier financial performance.
Over the coming year, we look forward to growing our presence in the Ontario market, and reaching the maximum of 10 stores per operator as quickly as possible,” he said.
Choom’s share price is trading for 9 cents per share at market open.