Choom Acquires 7 Additional Cannabis Retail Locations In BC, Alberta

Choom CHOOCHOOF, an emerging adult-use cannabis company in Canada, on Tuesday signed an agreement to acquire The Green Room, a popular cannabis retail store chain. The agreement involves the purchase of location assets from The Green Room, which includes three locations in British Columbia and four locations in Alberta.

Why It’s Important

Within current Canadian regulation, retail licenses are issued slowly and at retailers assume the high costs of developing stores without the ability to open them. Additionally, LPs cannot own retail storefronts, meaning the success of Canadian LPs is contingent on the number of retail stores open for business. Retail store owners are essential in the industry’s shift towards profitability, selling products to retail consumers at a slowly increasing rate.

Choom has been steadily acquiring retail opportunities across the Canada. This latest retail acquisition offers investors insight into where cannabis companies see future value emerging – a strong national retail presence.

Edibles and cannabis vape pens will not be legalized until October. These are two key product segments forecasted to lead cannabis consumer sales trends. When high-margin cannabis derivatives are able to be sold later this fall, expect consumer demand to drive these product’s sales and corresponding cannabis retailers’ profits.

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What’s Next

The two locations in Vancouver are expecting to receive development permits to operate legal cannabis retail stores. The location in Squamish has municipal approval and is awaiting approval from the Liquor & Cannabis Regulation Branch of British Columbia.

Three of the four acquired locations in Alberta have received development permits from the applicable municipalities to operate retail cannabis stores. Choom will submit its applications for cannabis retail store licenses to the Alberta Gaming, Liquor & Cannabis Commission at its earliest convenience.

“Green Room was a highly successful operator that originally opened in Vancouver as a compassion club offering medicinal cannabis to their patients. Choom looks to build on the good reputation they have in the communities they served and open legal cannabis retail stores in their successful locations," said Chris Bogart, President and CEO of Choom. “Our priority for these locations is to bring our unique Choom experience that encourages sharing education with consumers about the safe and responsible use of cannabis.”