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Choom Announces Private Placement of Convertible Debentures
Choom Announces Private Placement of Convertible Debentures.
About this update from Choom Hldgs Inc.
[{"type":"text","content":"\n\n\n\nChoom Announces Private Placement of Convertible Debentures\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nChoom Announces Private Placement of Convertible Debentures\nCanada NewsWire\nVANCOUVER, Dec. 20, 2019\n\n\n\n/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n VANCOUVER, Dec. 20, 2019 /CNW/ - Choom Holdings Inc. (the \"Company\" or \"Choom\") (CSE: CHOO; OTCQB: CHOOF), an emerging adult use cannabis company that has secured one of the largest national retail networks in Canada, is pleased to announce that will undertake a non-brokered private placement of secured convertible debentures (the \"Debentures\") for gross proceeds of $4,100,000 million (the \"Offering\").\nThe Debentures will mature two years after the issue date, subject to the rights of a holder to extend the term up to a further 12 months, and will accrue interest at the rate of 10.0% per annum, payable semi-annually. At a holder's option, the Debentures may be converted into common shares of Choom at a conversion price of $0.15. Under the Offering, the Company will also issue common share purchase warrants, each such warrant to be exercisable to acquire one Common Share for a four-year period at an exercise price of $0.20 per share.\nThe Offering is subject to customary closing conditions including, but not limited to, the receipt of any necessary stock exchange approvals. The net proceeds of the Offering will be used for store buildouts, general working capital purposes and inventory purchases. The Debenture warrants and any shares issued either on conversion or exercise will be subject to a four month hold period under applicable provincial securities laws in Canada.\nOne or more related parties of the Company may acquire Debenture Units under the Offering. Such participation will be considered to be \"related party transactions\" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Sp...