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Choom sets Ontario expansion in motion - The Market Herald
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  • Choom Holdings (CHOO) has announced an increase in revenue of $14.7 million, or 200 per cent, compared to fiscal year 2020
  • Other financial highlights include 6.31 per cent higher gross margin, lower general and administrative costs, and higher adjusted EBITDA
  • Choom remains committed to its strategy of providing customers with an elevated brand experience
  • Choom is a fast-expanding retail cannabis company that has established one of the largest store networks in Canada
  • Shares in Choom Holdings Inc. (CHOO) are currently trading at $0.06 per share

Choom Holdings (CHOO) has announced its financial and operating results for the 2021 fiscal year.

The company continued to grow despite challenges faced due to COVID-19, including an increase in revenue of $14.7 million, or 200 per cent, compared to fiscal year 2020.

Other financial highlights include 6.31 per cent higher gross margin, lower general and administrative costs, and higher adjusted EBITDA.

“I am thrilled with the year-to-date performance of the brand,” said Choom CEO Corey Gillon. “As COVID-19 restrictions continued to affect the broader retail landscape, cannabis retail was not exempt […] Despite these headwinds, Choom continued to successfully execute on its strategy.”

Over the fourth quarter, Choom saw “exceptionally strong” growth in British Columbia, with a 1,860 per cent year-over-year increase in sales. Sales in Ontario slowed in the third and fourth quarters, impacting overall results.

Despite the market being saturated with new cannabis retailers this year, Choom believes that there will be a market normalization on store count in Ontario in 2022, like what was seen in Alberta.

Subsequent to year-end, Choom opened two additional locations in Ontario: Toronto’s Liberty Village and Hamilton. Both locations continue to see growth since both their openings.

Choom remains committed to its strategy of providing customers with an elevated brand experience, including best-in-class educators in-store, while not diluting margins.

Since the re-launch of its website in March 2021, Choom has brought in approximately $1 million in ecommerce sales.

The company also launched Choom Plus, the brand’s new digital loyalty program, and is now optimizing its current database to grow its subscriber base.

Choom is a fast-expanding retail cannabis company that has established one of the largest store networks in Canada.

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.”

Shares in Choom Holdings Inc. (CHOO) are currently trading at $0.06 per share.

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