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Choom Completes $4,100,000 Convertible Debenture Unit Private Placement
Choom Completes $4,100,000 Convertible Debenture Unit Private Placement.
About this update from Choom Hldgs Inc.
[{"type":"text","content":"\n\n\n\nChoom Completes $4,100,000 Convertible Debenture Unit Private Placement\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 Completes $4,100,000 Convertible Debenture Unit Private Placement\nCanada NewsWire\nVANCOUVER, Dec. 24, 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. 24, 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 further to its news release of December 20, 2019, it has completed a non-brokered private placement of debenture units at $250,000 per unit for gross proceeds of $4,100,000 million (the \"Offering\"). \nThe debentures will mature on December 23, 2021, 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% 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 also issued 1,666,666 transferable common share purchase warrants per debenture unit, 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 net proceeds of the offering will be used for store buildouts, general working capital purposes and inventory purchases. The Debentures, 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, ending on April 24, 2020.\nTwo related parties of the Company participated in the Offering and acquired debenture units for $2.1 million. Such participation constituted a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transac...