VANCOUVER, British Columbia, June 24, 2020 (GLOBE NEWSWIRE) -- Choom™ (CSE: CHOO; OTCQB: CHOOF), an elevated adult use cannabis company that has secured one of the largest national retail networks in Canada announces that it has reached an agreement with an arms-length lender (the “Lender”) to amend the terms of its non-transferable unsecured convertible debenture issued in November 2018 and maturing November 2022. The convertible debenture bears interest at a rate of 6.5% per annum on the outstanding principal sum.
Pursuant to the terms of an amended and restated convertible debenture dated June 24, 2020 (the “Amended and Restated Debenture”) Choom has agreed, among other things, to grant to the Lender a second ranking security interest over all of its present and after-acquired property. The security interest will be governed in accordance with the terms and conditions of a security agreement between Choom and the Lender dated June 24, 2020. Among other amendments, the Amended and Restated Debenture includes amendments reflecting (i) a 90-day exclusivity period during which the Lender has agreed not to sell, transfer or assign its indebtedness to any third party, (ii) a right of first refusal in favour of Choom in respect of any future proposed sale, transfer or assignment of the indebtedness by the Lender, and (iii) a reduction of the conversion price of the debenture from $1.25 to $0.65 per share.
“Choom is pleased to have reached a mutually beneficial agreement with our lending partner,” Corey Gillon, CEO, states. “We continue to receive the support of shareholders and convertible debenture investors who support the Company and its business plan. Choom is driving growth and expansion as we continue to execute on our business plan to become a leading national cannabis retailer in Canada.”
Choom™ is a fast-expanding retail cannabis company who 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.
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 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.
Choom Holdings Inc.
Corey Gillon, CEO
Chris Bogart, President