Choom’s acquisition of Clarity Cannabis retail stores includes three licensed by Alberta commission

Angela Stelmakowich - thegrowthop.com Posted 5 years ago
image

Choom Holdings Inc. has entered into a definitive agreement with Clarity Cannabis MD Holdings and its shareholders to acquire the company’s 30 retail locations in Alberta, including three locations already licensed in the adult-use cannabis market.

Clarity has progressed through Alberta Gaming, Liquor & Cannabis Commission (AGLC) licensing, notes a statement from Choom, an emerging adult-use cannabis company that has secured one of the largest national retail networks in Canada.

 

  • Choom expands its footprint across western Canada
  • Northern Lights Supply opens retail store alongside Alberta’s busiest corridor
  • Inner Spirit acquires two cannabis retail locations in Alberta as part of $2 million deal

 

The agreement calls for Choom to pay $2 million to Clarity’s principal shareholder and issue 6 million Choom shares to all of Clarity’s shareholders, subject to escrow release over two years, the press release explains. Subject to conditions and timeframes, Choom will make additional payments to the principal and issue additional shares to Clarity’s shareholders.

“Choom will issue 8,867,000 Choom shares and pay $2.5 million to the principal in connection with the acquisition,” the press release states.

Beyond the three licensed cannabis retail stores, “the acquisition includes all 30 leases secured and applications submitted to the AGLC by Clarity. Clarity currently has 11 development permits awaiting construction, with six stores to commence construction, and nine stores completed construction,” it points out.

Focused on delivering an elevated customer experience through curated retail environments that offer a diversity of brands, Choom now has three legal adult-use cannabis stores that have opened in the Alberta communities of High River, Cold Lake and Red Deer; it is awaiting licences for seven cannabis retail stores in Cold Lake, Westlock, Lloydminster, Camrose (two), Drumheller, Brooks, Lethbridge and Medicine Hat.

 

 

“Choom expects the licences for the remaining completed stores to be granted soon after the AGLC starts to grant additional retail licences,” the company reports. Upon receiving approval, all Clarity retail stores and retail opportunities will be re-branded under the Choom Cannabis Co. name.

“Clarity has been successfully operating in Alberta since December and has submitted applications across the province. This transaction gives us a strong foothold in the Alberta retail landscape,” says Chris Bogart, president and CEO of Choom. “Moving forward, we will be working diligently to maximize our retail footprint Canada-wide, and this transaction helps us to achieve that goal,” Bogart notes.

Completion of the acquisitions of the retail stores and opportunities will depend on the timing of the receipt of all necessary provincial and municipal approvals.

 

Want to keep up to date on what’s happening in the world of cannabis?  Subscribe to the Cannabis Post newsletter for weekly insights into the industry, what insiders will be talking about and content from across the Postmedia Network.