Aurora Cannabis Inc. (TSX:ACB), one of the Canadian marijuana stocks, recently gave an update on its Choom Holdings investment
SmallCapPower | March 12, 2019: Aurora Cannabis Inc. (TSX:ACB), one of the Canadian cannabis stocks, Thursday released an update regarding its investment in Choom Holdings Inc. (CSE:CHOO), a recreational cannabis company that has secured one of the largest retail networks in Canada. Aurora Cannabis has invested $27 million in Choom through a private placement (June 2018) and convertible debentures (November 2018). Choom has built out 17 retail locations across Western Canada and eight more are in the pipeline.
For Our Complete Coverage Of Canadian Marijuana Stocks Click Here
Choom has achieved a number of feats in 2018, such as securing 22 cannabis retail opportunities in Alberta and British Columbia through June to August 2018. In September 2018, Choom became a part of Canadian Securities Exchange’s CSE25 Index and the Horizons Marijuana Life Sciences ETF. In December 2018, it closed a previously-announced acquisition of Clarity Cannabis Medical Centres, which included five new medical centres and a proprietary telemedicine platform.
Further, in February 2019, Choom entered into a letter of intent with one of the 25 Cannabis Retail lottery winners to open a location in Ontario. It also completed a customized e-commerce platform through a licensed enterprise-level platform to handle both B2C and B2B sales to service and sell to any type of buyer in the cannabis industry, as well as signing a definitive agreement with Clarity Cannabis MD Holdings to acquire 30 retail locations (three of which are licensed with the AGLC).
Aurora Cannabis CEO Terry Booth stated, “Choom has demonstrated a strong commitment to rapidly executing its strategic growth plans by developing a sophisticated retail channel across Western Canada while diversifying their operations through further expansion into Ontario. Through our strategic investment, we have helped to expedite Choom’s commercial launch while gaining valuable insights into the consumer decision making process, which has helped to shape our product allocation and in-store marketing initiatives. I’d like to congratulate Choom on their success to date and look forward to the upcoming projects that the team continues to work on as they roll out their unique retail brand experience across Canada.”
Choom Holdings CEO Chris Bogart said, “We’re only just getting started and our unique, elevated retail environments are now being established across the country. With the strong support provided by Aurora, we’ve accelerated our growth initiatives, resulting in the rapid development of our retail footprint across Canada. We are excited to have the opportunity participate in one of the largest new consumer markets in decades and we look forward to inheriting a portion of the estimated $4B+ of cannabis demand in the country.”
Aurora Cannabis is one of the leading global cannabis companies, with a funded production capacity of ~500,000 kg annually, and operations in 24 countries across five continents. The Company currently trades at a market capitalization of $10.8 billion with a price-to-book multiple of 2.4x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
