The Vancouver-based cannabis company works on expanding its services across the nation, and this acquisition is part of that plan.
It makes for an attractive investment, considering that the retail store in Niagara Falls has reported unaudited gross sales of around $7 million since its launch in June 2019.
The purchase price was set to $2 million in cash, of which $1.45 million will be taken from the aggregate operating cash flow from the Niagara Store, and $2 million worth of Choom’s shares issued to the vendor.
“Choom is excited to add the Niagara store to its corporately owned portfolio of stores, with its large and loyal customer base and top-tier financial performance,” Corey Gillon, Choom’s CEO, said in a statement. “Over the coming year, we look forward to growing our presence in the Ontario market and reaching the maximum of 10 stores per operator as quickly as possible.”
Choom’s shares closed Thursday’s market session 7.26% higher at 7 cents per share.
Photo courtesy of Choom.
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