Canadian cannabis company Choom has signed a definitive agreement with Clarity Cannabis MD Holdings and its shareholders to buy 30 retail locations in the country.
Of the 30 locations, three stores in Alberta are licensed with the Alberta Gaming, Liquor & Cannabis Commission (AGLC).
The deal covers all of the 30 leases secured and Clarity has submitted applications to the AGLC.
Clarity currently has 11 development permits that are yet to be constructed. It has already constructed nine stores and six are awaiting construction.
Choom will pay $2m to Clarity’s principal shareholder and issue six million of Choom’s shares to all of Clarity’s shareholders as part of the agreement.
It will also issue 2.5 million Choom shares to all of Clarity’s shareholders after it receives AGLC approval for the company to acquire one of the Clarity retail stores or to operate any cannabis retail store in Alberta. The issue of shares is subject to escrow release over two years.
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Choom president and CEO Chris Bogart said: “We are thrilled to welcome Clarity into the Choom brands portfolio through this acquisition.
“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.
“Moving forward we will be working diligently to maximise our retail footprint Canada-wide, and this transaction helps us to achieve that goal.”
Choom also expects to receive licences for the remaining completed stores from the AGLC after it starts granting additional retail licences.
The company also plans to rebrand all of the Clarity retail stores and retail opportunities under the ‘Choom Cannabis Co’ name.