Choom Amends and Restates Convertible Debenture with Lender as it Executes on its Balance Sheet Optimization Strategy
VANCOUVER, British Columbia, June 24, 2020 (GLOBE NEWSWIRE) — Choom™ (CSE: CHOO; OTCQB: CHOOF), an elevated adult use cannabis company that has secured one of the largest national retail networks in Canada announces that it has reached an agreement with an arms-length lender (the “Lender”) to amend the terms of its non-transferable unsecured convertible debenture issued in November 2018 and maturing November 2022. The convertible debenture bears interest at a rate of 6.5% per annum on the outstanding principal sum.
Pursuant to the terms of an amended and restated convertible debenture dated June 24, 2020 (the “Amended and Restated Debenture”) Choom has agreed, among other things, to grant to the Lender a second ranking security interest over all of its present and after-acquired property. The security interest will be governed in accordance with the terms and conditions of a security agreement between Choom and the Lender dated June 24, 2020. Among other amendments, the Amended and Restated Debenture includes amendments reflecting (i) a 90-day exclusivity period during which the Lender has agreed not to sell, transfer or assign its indebtedness to any third party, (ii) a right of first refusal in favour of Choom in respect of any future proposed sale, transfer or assignment of the indebtedness by the Lender, and (iii) a reduction of the conversion price of the debenture from $1.25 to $0.65 per share.“Choom is pleased to have reached a mutually beneficial agreement with our lending partner,” Corey Gillon, CEO, states. “We continue to receive the support of shareholders and convertible debenture investors who support the Company and its business plan. Choom is driving growth and expansion as we continue to execute on our business plan to become a leading national cannabis retailer in Canada.”About Choom™
Pursuant to the terms of an amended and restated convertible debenture dated June 24, 2020 (the “Amended and Restated Debenture”) Choom has agreed, among other things, to grant to the Lender a second ranking security interest over all of its present and after-acquired property. The security interest will be governed in accordance with the terms and conditions of a security agreement between Choom and the Lender dated June 24, 2020. Among other amendments, the Amended and Restated Debenture includes amendments reflecting (i) a 90-day exclusivity period during which the Lender has agreed not to sell, transfer or assign its indebtedness to any third party, (ii) a right of first refusal in favour of Choom in respect of any future proposed sale, transfer or assignment of the indebtedness by the Lender, and (iii) a reduction of the conversion price of the debenture from $1.25 to $0.65 per share.“Choom is pleased to have reached a mutually beneficial agreement with our lending partner,” Corey Gillon, CEO, states. “We continue to receive the support of shareholders and convertible debenture investors who support the Company and its business plan. Choom is driving growth and expansion as we continue to execute on our business plan to become a leading national cannabis retailer in Canada.”About Choom™
