Choom Holdings Inc (OTCMKTS:CHOOF) recently signed a supply and financing agreement with ABcann Global Corp (OTCMKTS: ABCCF) according to the leading creative agency and media network CFN Media Group. The publication that supports cannabis legalization in its news piece highlighted Choom’s efforts to develop itself as the premier recreational brand across Canada and also discussed in detail its agreement with the largest licensed producer of the country.
CHOOF has focused all its attention towards only one goal and that is to improve its standing in the recreational marijuana market of Canada, which is expected to reach C$22.6 billion in the coming years as reported by Deloitte. The company wants to establish itself as the leading supplier of the cannabis-based products in Canada, and this deal with ABCCF is one part of the plan.
The CEO of ABcann, Barry Fishman stated, “ABcann remains committed to becoming a global leader in the cannabis sector. With our strategic investment in Choom, we are signaling a strong move into the recreational market with one of the premium recreation brands in Canada.” There are rapid development and upheaval in the cannabis market especially after the legalization of recreational marijuana which is quite different from the medical cannabis.
And hence, the market trend in terms of buyers as well as products is also going to be quite different which can be a big challenge for Choom which is going full throttle acquiring companies awaiting license from Health Canada for producing cannabis.
Choom On Acquisition Spree
Recently CHOOF acquired International Tungsten Inc. after entering into a definitive agreement for acquiring Marijuana Specialty Products Inc.(MSP) that is awaiting cultivation license from Health Canada in the coming weeks. CHOOF management believes that it will help the company to get sales license fast. The fully-integrated lifestyle cannabis company also entered into another definitive agreement for acquiring Island Green Cure Ltd. (IGC), an applicant under advanced-stage cannabis production with its application already in the “Confirmation of Readiness Stage” under the ACMPR application process of Health Canada.
All these moves are a part of the long-term plan of the company to establish itself as a fully-integrated cannabis company across Canada offering lifestyle cannabis brands in the recreational marijuana market.