NetworkNewsWire
Editorial Coverage: The legalization of recreational cannabis
is set to make the Canadian cannabis industry worth billions of
dollars. Those companies that can navigate the arduous licensing
processes will be in a position to make the most of this
opportunity. Choom Holdings, Inc. (CSE: CHOO) (OTCQB:
CHOOF) (CHOOF
Profile) has built a strong
leadership team to meet this challenge while preparing the company
for cultivation and retails sales to meet regulatory needs.
Aurora Cannabis, Inc. (TSX: ACB) (OTCQX: ACBFF) is
one of the largest licensed medical growers and is expanding in
preparation for the change in the law, acquiring cannabis related
companies and striking deals with others. Namaste
Technologies (CSE: N) is showing a different approach to
cannabis retail through its ecommerce platform and telemedicine
portal. Companies such as Emerald Health Therapeutics, Inc.
(TSXV: EMH) (OTC: EMHTF) are partnering with Village Farms
to more quickly establish growing facilities that meet regulatory
standards. And the Supreme Cannabis Company, Inc. (TSXV:
FIRE) (OTC: SPRWF) is planning annual production capacity
provide product for retail from their leading-edge production
facilities.
A Long-Awaited Change
The legalization of recreational cannabis has been coming to
Canada for some time.
Over the past 20 years, attitudes about marijuana have shifted
internationally. More and more people take a liberal view on drugs,
while public health research has shown that licensing is more
beneficial than banning cannabis. When Justin Trudeau became prime
minister of Canada in 2015, his Liberal Party stood for this
changing attitude. Though it’s taken several years, the Liberals’
legislation is now passing through the Senate, with the Cannabis
Act (Bill C-45) just passed successfully through the second reading
in the Senate (http://nnw.fm/GzC0n), paving the way for further study
and a third and final reading in June 2018.
If passed as expected into law, Bill C-45 will make recreational
cannabis openly available and ready for recreational by the end of
this summer.
With estimates for the market ranging from $10 billion to $22
billion, this move will be huge for Canadian cannabis businesses. A
number of companies are preparing to make the most of the
opportunity. Some are established cannabis companies that have made
their names serving the medical market. Others are new companies
founded to enter the recreational sector. For all of them,
recreational licensing is critically important. The ability to
successfully enter the retail market will be a key differentiator
for these companies over the next year.
The Right Team for the Challenge
Having the right mix of skills and experience will be critical
in order for companies to earn licenses to grow and sell cannabis.
Choom
Holdings (CSE: CHOO) (OTCQB: CHOOF), one of the new
companies looking to focus on the recreational sector, has
established a strong team for this task.
At the Choom™ head is president and CEO Chris Bogart. With more
than 20 years of experience in international capital markets, he
has dealt with the wide range of capital markets requirements that
surround mergers, acquisitions and corporate finance. This
experience includes work in the medical sector as co-founder of
cannabis biotech InMed Pharmaceuticals. He has a strong grasp of
both the broad process of financing and operating demands required
to adapt to the cannabis sector.
COO Michael Forbes has proven expertise in running retail
pharmacies and related businesses. During a 14-year business
career, he has established and run a chain of nine pharmacies and
eight medical clinics, including methadone clinics. With a degree
in pharmacy, he was a natural choice to help create the procedures
for the College of Pharmacists of B.C. in 2010. His experience with
tightly regulated pharmaceutical and medical businesses, as well as
his understanding of the retail operations and distribution, will
ensure the smooth running of Choom’s retail and compliance
operations.
ACMPR (Access to Cannabis for Medical Purposes Regulations)
licenses for growing cannabis specify a Senior Person in Charge
(SPIC), so having a skilled professional for this position is
vital. Robert Bayrack, the company’s master grower, takes this role
at Choom. Robert brings extensive knowledge of cannabis
horticulture, plant pathology and cultivation mastery, as well as
experience in project management and construction. Having worked
within the medical cannabis industry, he has a proven track record
in growing high-quality products within the rules set down by
regulators.
Licensed Production
Choom is expected to receive its first cultivation license this
month and has three more in the pipeline. These are attached to
four separate growing facilities, each with space to expand their
annual production capacity.
First is the facility at Sooke, B.C., for which the license is
expected to be approved soon. This facility has 10,000 square feet
of space spread across two buildings. Both have state-of-the-art
facilities that are operationally ready and compliant with the
ACMPR standards and are expected to be growing by fourth quarter
2018.
This site also has space and plans in place for a second and
third phase of building and growth. The second phase will more than
double the growing area to over 19,000 square feet. But it’s the
third phase that is truly ambitious, expanding the site to just
over 700,000 square feet of mixed indoor and greenhouse growing.
Zoning for phase three has already been approved.
A second site, High Way 10, covers 16,000 square feet on a
120-acre parcel. It is in the active review stage of ACMPR
licensing process. The company is also actively working on
obtaining a retail license from Saskatchewan authorities in order
enter the retail market and sell product across the province.
The other two sites, at Vernon and Chemainus, are also key to
Choom’s growing capacity. With 11,300 square feet of growing space
between them, these facilities are being prepped for cannabis
production, with Vernon undergoing state-of-the-art retrofits to
create some of the most effective cultivation facilities for the
company. As at Sooke, plans are in place for extensive expansion at
both facilities so that Choom can increase its production capacity
once the recreational market is established and the sales start to
flow.
Streamlined Stores
Licensed stores will also be important for a vertically
integrated cannabis company such as Choom. The company has
established a design and plan for these stores that are helping to
demonstrate that it is ready for licensing and that will
communicate its brand appeal to customers.
Choom itself will operate some corporate stores. Others will be
run by independent investor/operator owners. This will allow the
company to present a consistent brand with well-regulated outlets
across the country.
The design of these outlets combines a modern store design with
a relaxed style that is the Choom brand. A combination of clean
lines and warm interiors will offer a distinctive and inviting
space that will be comfortable for customers. Choom retail is
designed to appeal to both established cannabis users with
outstanding product selection and offer education for those new
consumers who are curious about the product. Created by the design
team behind some of the most popular modern retail environments,
the stores have a style meant to help Choom stand out. And with a
leadership team well versed in navigating regulatory processes, the
company should be able to gain a foothold within Canada’s new
retail cannabis market.
Expanding the Cannabis Sector
A variety of other companies are also preparing to take their
places in Canada’s expanding cannabis sector. Some are purely
recreational, while others are moving in from the medical side.
One of the world’s largest and fastest-growing cannabis
companies, Aurora Cannabis, Inc. (TSX: ACB) (OTCQX:
ACBFF) is preparing to expand from medical product sales
into recreational uses. It recently finalized the largest
acquisition in the history of the cannabis industry, with the
purchase of over 95 percent of shares in CanniMed and plans to
compulsorily obtain the rest. Having entered a supplier agreement
with Shoppers Drug Mart, Aurora is in a position to effectively
market the products of its expanded capacity.
Though still focused entirely on the medical side,
Namaste Technologies (CNX: N) may well be showing
the way forward for recreational brands. The company began as a
cannabis e-commerce provider, with 32 sites in 20 countries. It is
now working on a telemedicine portal that will connect
cannabis-using patients with doctors. Such streamlined approaches
let customers more easily obtain their cannabis, and may be only a
matter of time before similar approaches are adopted by the
recreational sector.
Emerald Health Therapeutics, Inc. (TSXV: EMH) (OTC:
EMHTF) is one of several companies partnering with
greenhouse farms ahead of the legalization of recreational
cannabis. These partnerships will provide an economic boost to
struggling farmers while giving cannabis companies access to
experienced horticultural staff and more flexibility in their
growing capacity as the market expands.
Other sorts of partnerships will also help the industry to grow.
The Supreme Cannabis Company, Inc. (TSXV: FIRE) (OTC:
SPRWF) is setting up a series of supply agreements with
companies such as BlissCo, in which it holds a 10 percent ownership
stake. This provides an outlet for 7ACRES, a Supreme subsidiary
that the company is developing into a leading cannabis
cultivator.
Any company entering the cannabis market will face plenty of
competition, with companies expanding their growing capacity and
developing new technologies, partnerships and business practices.
Only those who can successfully manage the licensing processes will
be able to make the most of these advances, and so ensure their
place in the new recreational market.
For more information on Choom Holdings, please
visit Choom Holdings
(CSE: CHOO) (OTCQB: CHOOF).
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content
distribution company that provides (1) access to a network of wire
services via NetworkWire to
reach all target markets, industries and demographics in the most
effective manner possible, (2) article and editorial syndication to
5,000+ news outlets (3), enhanced press release services to ensure
maximum impact, (4) social media distribution via the Investor
Brand Network (IBN) to nearly 2 million followers, (5) a full array
of corporate communications solutions, and (6) a total news
coverage solution with NNW Prime. As a
multifaceted organization with an extensive team of contributing
journalists and writers, NNW is uniquely positioned to best serve
private and public companies that desire to reach a wide audience
of investors, consumers, journalists and the general public. By
cutting through the overload of information in today’s market, NNW
brings its clients unparalleled visibility, recognition and brand
awareness. NNW is where news, content and information converge.
For more information, please visit https://www.NetworkNewsWire.com
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Please see full terms of use and disclaimers on the
NetworkNewsWire website applicable to all content provided by NNW,
wherever published or re-published: http://NNW.fm/Disclaimer
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by NNW are
solely those of NNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable NNW for any investment
decisions by their readers or subscribers. NNW is a news
dissemination and financial marketing solutions provider and are
NOT registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, NNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and NNW undertakes no
obligation to update such statements.
Source:
NetworkNewsWire
Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Choom (CSE:CHOO)
Historical Stock Chart
From Nov 2024 to Dec 2024
Choom (CSE:CHOO)
Historical Stock Chart
From Dec 2023 to Dec 2024
