NOT FOR DISTRIBUTION TO U.S NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Choom™ (CSE: CHOO; OTCQB: CHOOF), a fast-expanding retail cannabis company that has established one of the largest store networks in Canada, is pleased to announce it has completed a non-brokered private placement for gross proceeds of C$1.95 Million through the issuance of an aggregate 27,857,143 units ("Units") at a price of $0.07 per Unit. Each Unit consists of one common share and one-half of one non-transferrable warrant (each whole warrant a “Warrant”). Each Warrant entitles the holder to purchase an additional common share at an exercise price of $0.12 per share until February 3, 2023.
In connection with the Offering the Company has paid aggregate finders' fees of $82,120 in cash and issued 1,173,140 finders warrants (“Finder Warrant”). Each Finder Warrant entitles the holder to acquire one additional Common Share at a price of $0.12 per share on the same terms as the Warrants until February 3, 2023.
All securities issued are subject to a hold period expiring June 4, 2021. The Company intends to use the net proceeds from the private placement for general working capital and corporate purposes.
Additionally, the Company advises the grant of 1,000,000 stock options (the “Options”) to an officer. The Options have an exercise price of $0.10 per share, are exercisable until February 4, 2026 and will be governed in accordance with the terms of the Company’s stock option plan.
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”. Evoking the spirit of the original Choom Gang, our brand caters to the Canadian 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.
For additional information
Corey Gillon, CEO
Chris Bogart, President
Cautionary Statement on Forward-looking information
This news release contains forward-looking information relating to the Company's proposed activities and other statements that are not historical facts. 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. 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. These factors include risks and uncertainties associated with or arising as a result of delays in obtaining or an inability to obtain required regulatory approvals, access to sufficient quantities of cannabis, the results of diligence investigations, the actions of third parties, the results of negotiations with third parties, developments in the cannabis sector, the ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays and other risks and uncertainties discussed in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings, including those made with the CSE and applicable Canadian securities regulators. 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.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTED RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.