Mr. Chris Bogart reports
CHOOM SIGNS LOI TO ENTER US MARKET THROUGH INVESTMENT IN NEW JERSEY CANNABIS RETAILER
Choom Holdings Inc. is entering the United States, starting with the state of New Jersey. Choom through its wholly owned U.S. subsidiary, Choom Holdings USA Inc., has signed a letter of intent (LOI) to purchase an equity interest in a New Jersey-based medical retail dispensary applicant in New Jersey's upcoming request of applications (RFA) that also intends to enter into recreational cannabis retail upon legalization, which is anticipated in 2020.
The N.J. company is advancing on its retail store strategy in New Jersey with the intention of receiving licences to operate the maximum allowable cannabis stores for medical and eventually adult use when formally approved by the state. With these licences, the N.J. company intends to create a network of branded stores using Choom's medical brand, Clarity Medical Centres, or Choom for its recreational retail stores in the future. Choom will assist the N.J. company in this highly regulated market for the buildout and operations of cannabis retail stores. Choom will receive a royalty from the N.J. company for the use of the Choom brands. Choom's investment in the N.J. company includes pro rata rights to maintain its equity interest on future financings.
"This is our first step into the United States, and we are very excited for our partnership with this experienced group to have the Choom brands in New Jersey," stated Chris Bogart, president and chief executive officer of Choom Holdings. "New Jersey is home to over nine million people currently being served by only 12 cannabis operators in its medical program. New Jersey is an exceptional market to expand the Choom brands. We are very impressed with the progress they have achieved to date, and with our expertise in cannabis retail, we are confident we can help them successfully operate in the New Jersey market."
The terms are not material.
About Choom Holdings Inc.
Choom is an emerging adult-use cannabis company whose mission is to establish one of the largest retail networks in Canada.
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