Choom (CSE:CHOO,OTCQB:CHOOF) announced Wednesday (July 17) that pursuant a convertible debenture issued to Choom by Coastal Green Holdings, Choom will acquire a 19.9% equity interest in the BC-based cannabis retailer.
As quoted in the press release:
Choom’s investment includes various rights, including the right in certain circumstances to acquire 100% of Coastal Green, subject to regulatory restrictions on the number of cannabis retailers Choom may own over time. This investment provides another avenue for Choom to expand its growing cannabis retail footprint in British Columbia and Alberta. Coastal Green has submitted its application to the British Columbia Liquor and Cannabis Regulation Branch (“LCRB”) to become an approved retailer with the intention of opening 8 retail stores mostly localized on the islands off the west coast of British Columbia. Choom will assist Coastal Green by providing support with its cannabis retail operational expertise and store development.
“Coastal Green makes a very welcomed addition to our portfolio of brands and our network of cannabis retail locations in Canada.” states Chris Bogart, President & CEO of Choom. “The key driver for this investment was finding an innovative way to maximize our footprint in BC while also gaining additional revenue streams to further grow shareholder value. With the Coastal Green concept, consumers can expect the same warm and welcoming experience with knowledgeable staff they’ve come to know in our Choom locations.”