Calling it a strategic investment, Aurora invested $27 million in the Choom private placement and the convertible debenture offering. The money helped Choom in achieving “a number of its strategic growth initiatives,” Aurora said in a statement.
During the last year, Choom secured 22 cannabis retail opportunities in Alberta and British Columbia and completed the acquisition of Clarity Cannabis Medical Centres, which included five new medical centers and a telemedicine platform.
Last month, the company completed the build-out of a customized e-commerce channel through a licensed enterprise-level platform and signed a deal to acquire Clarity Cannabis Retail Stores in Alberta, adding 30 retail locations in Alberta, 3 of which have been licensed by the Alberta Gaming, Liquor & Cannabis Commission.
Choom completed the buildouts of 17 retail locations across Western Canada. It has eight additional retail locations currently under construction. These retail opportunities are subject to all the necessary provincial regulatory approvals.
Terry Booth, CEO of Aurora, said in a statement that Choom is “rapidly executing its strategic growth plans by developing a sophisticated retail channel across Western Canada.”
“Through our strategic investment, we have helped to expedite Choom’s commercial launch while gaining valuable insights into the consumer decision-making process which has helped to shape our product allocation and in-store marketing initiatives,” Booth stated.
Chris Bogart, CEO of Choom, said in prepared remarks that the company made accelerated its growth initiatives “with the strong support provided by Aurora.” He noted that Choom is looking forward “to inheriting a portion of the estimated $4B+ of cannabis demand in the country.”