Business
Choom Announces Strategic Acquisition of Phivida Accelerating Digital Strategy & Strengthens its Balance Sheet
Choom Announces Strategic Acquisition of Phivida Accelerating Digital Strategy & Strengthens its Balance Sheet.
About this update from Choom Hldgs Inc.
[{"type":"text","content":"\n Vancouver, British Columbia, June 03, 2020 (GLOBE NEWSWIRE) -- Transaction strengthens Choom’s leadership position in Canadian cannabis retailChoom poised for accelerated growth with omni-channel retail growth strategyStrategically timed to benefit from the continued Ontario retail rolloutCompelling value-creation opportunity with defensible store portfolio in flagship locationsEnhanced capital markets presence and balance sheet strength to fuel growth in 2020 and beyondCombines the strength of Choom and Phivida’s executive teams, national relationships and strategic shareholders with capabilities across retail, branding and digital analytics Choom Holdings Inc. (“Choom”) (CSE: CHOO; OTCQB: CHOOF) and Phivida Holdings Inc. (“Phivida”) (CSE: VIDA) are pleased to announce that they have entered into a definitive arrangement agreement dated June 2, 2020  (the “Arrangement Agreement”) pursuant to which Choom will acquire all of the issued and outstanding common shares of Phivida (the “Phivida Shares”) in exchange for common shares of Choom (the “Choom Shares”) in an arm’s length all-share transaction valued at approximately $7.3 million (the “Transaction”). Under the terms of the Arrangement Agreement, Phivida shareholders will receive 0.72566 of a Choom Share in exchange for each Phivida Share held (the “Exchange Ratio”) based on $0.082 per Phivida Share, representing a 10% premium to the 20-day volume weighted average price of the Phivida Shares ending June 2, 2020, and based on a 20-day volume weighted average price of the Choom Shares for the same period, being $0.113 per Choom Share. Based on the closing price of the Phivida Shares on June 2, 2020, the Transaction results in an implied premium of approximately 20% per Phivida Share. Upon completion of the Transaction, existing Choom and Phivida shareholders will hold approximately 78% and 22% of the pro forma company, respectively, on a fully diluted basis. “The acquisition of Phivida will further Choom’s ability to deliver on our business plans and accelerate our growth initiatives, enabling our omni-channel strategy through enhanced digital capabilities, and an expanded brick-and-mortar presence across Canada,” said Corey Gillon, CEO of Choom. &...