Choom Completes Deal to Buy 10 Retail Stores in Alberta

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Canadian cannabis retailer Choom [stock_market_widget type="inline" template="generic" color="default" assets="CHOO.CN" markup="(CSE: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] has completed its acquisition of 10 Clarity Cannabis stores spread across the province of Alberta.

It signed a definitive agreement to buy the stores back in February 2019 for a total of $2.5 million in cash and 6,650,250 shares of Choom. The payment will be made in various stages, with $2 million going to the principal shareholder of Clarity Cannabis.

It has finally closed the deal, adding stores in Brooks, Camrose, Drumheller, High River, Lloydminster, Medicine Hat, Red Deer, Westlock, and two in Cold Lake.

Choom now has 32 locations across Canada, including a flagship outlet in Niagara Falls, Ontario, and another in Whitehorse, Yukon. The Vancouver-based firm is targeting another 12 stores in Alberta by January 2020.

In August, it agreed to buy seven stores from The Green Room – three in its home province of British Columbia and four in Alberta. It sees great potential in the Alberta cannabis market.

“We’re thrilled to bring the Choom retail experience to the Province of Alberta,” said president Corey Gillon, who previously spent 18 years at Walmart, where he led multibillion-dollar business units of more than 100 stores. “With the completion of this acquisition, Choom is now generating revenue through these locations.”

As of Dec.1, 2019, Gillon is swapping jobs with chief executive Chris Bogart, who will become president. Michael Forbes will be stepping down as the chief operating officer and as a director of the company as Gillon assumes the day-to-day responsibilities of this operating role.

The company takes inspiration from a group of friends known as the Choom Gang, who spent their time smoking weed in 1970s Honolulu. Former President Barack Obama was in the Choom Gang.

It plans to create a 125-strong empire of retail stores from coast to coast in Canada, while it also has Concord Medical Clinics. Last week it secured a retail location in the Olympic Village in Vancouver.

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Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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