Choom Signs LOI to Enter Florida Market Through Investment in Vertically-Integrated Cannabis Applicant
VANCOUVER, March 25, 2019 /CNW/ - Choom Holdings Inc. (Choom™) (CSE: CHOO) (OTCQB: CHOOF) ("Choom"), an emerging adult and medical use cannabis company that has secured one of the largest national retail networks in Canada, is pleased to announce, following its strategy to become a multi-state operator, that it intends to expand into Florida. Choom, through its wholly owned US subsidiary, Choom Holdings USA Inc., has signed a letter of intent ("LOI") to purchase a 95% equity interest in a Florida-based vertically-integrated cannabis applicant (the "FL Company").
The FL Company is progressing on its Master License application to operate up to 25 retail locations with potential for more as the number of registered patients increase, as well as, a micro-processing and cultivation facility for medical purposes. Upon completing the transaction, Choom will use its medical brand, Clarity Medical Centres, to create a network of branded Medical Marijuana Treatment Centers. Florida's medical marijuana program has over 190,000 qualified patients, up from approximately 168,000 at the start of 2019, making it the largest medical marijuana market in the United States. Florida has recently allowed the use of smokable medical marijuana products, potentially opening the program to a considerably larger audience.
We are very excited to be expanding into Florida and to bring Choom's medical brand into that market. Florida'smedical marijuana program is a very attractive opportunity for us seeing that it allows for vertically-integrated operations and it has been a market we've had our sights on for a while now
states Chris Bogart, President & CEO of Choom.
This investment aligns with our strategy of becoming a multi-state operator in the US and helps us to bolster our growth targets. Florida is home to over 21 million residents and has shown impressive year over year growth on the number of registered patients with a large portion of the market being relatively uncaptured
The terms of the LOI are not material.
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Choom™ is an emerging adult use cannabis company whose mission is to establish one of the largest retail networks in Canada and the United States. The Choom brand is inspired by Hawaii's "Choom Gang"—a group of buddies in Honoluluduring 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 caters to the Canadian adult use market with the ethos of 'cultivating good times'. Choom™ is focused on delivering an elevated customer experience through our curated retail environments, offering a diversity of brands for Canadians across a national retail network.
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" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information relates to management's future outlook and anticipated events or results, and includes statements or information regarding the future plans or prospects of the Company. Forward-looking information in this news release includes statements about: expanding into Florida; purchasing a 95% equity interest in the FL Company; the FL Company's potential to operate up to 25 retail locations as well as a micro-processing and cultivation facility; creating a network of branded Medical Marijuana Treatment Centers; and opening Florida's medical marijuana program to a larger audience.
With respect to the forward-looking information contained in this news release, Choom has made numerous assumptions regarding, among other things: closing the transaction contemplated by the LOI; receipt of necessary regulatory approvals; the development of medical marijuana regulations in Florida; continued demand for Choom's products; and continued economic and market stability. While Choom considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies.
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. Identified risk factors include: the transaction contemplated by the LOI may not be completed on a timely basis, or at all; FL Company's Master License application may not be approved on a timely basis, or at all; changes in state or US federal laws and policies governing medical or adult use cannabis sectors; the results of diligence investigations; developments in the cannabis sector; delays resulting from or inability to obtain required regulatory approvals; the ability to access sufficient capital from internal and external sources; reliance on key personnel; and economic or market conditions may worsen. A more complete discussion of the risks and uncertainties facing Choom is disclosed in Choom's most recent Annual Information Form and other continuous disclosure filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com.
There can be no assurance that such forward-looking 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. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Choom disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
SOURCE Choom Holdings Inc.