As we edge ever closer to the start date for full-on recreational cannabis consumption in Canada, the market is going through the process of separating the wheat from the chaff in the space, and so far appears to be casting a favorable light on Choom Holdings Inc (OTCMKTS: CHOOF). The stock broke out above range resistance earlier this month on high volume and has now stabilized in new territory in a manner that strongly suggests a trend extension could be at hand.
To help prepare for expanding operations in the space, the company just announced the appointment of Kyp Rowe to the Management team in the role of Director of Operations. According to the release, “Mr. Rowe will be a key member of the Choom team, leading our premium craft cannabis cultivation strategy to support our retail roll-out for the recreational market in Canada.”
Choom Holdings Inc (OTCMKTS: CHOOF), together with its wholly-owned subsidiary, Medi-Can Health Solutions Ltd., a cannabis production license applicant under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR), intends to develop a unique lifestyle brand for cannabis for Canada’s emerging cannabis market
Moreover, the company engages in cultivating and selling cannabis for medical purposes and related products under the Choom brand name.
The company was formerly known as Standard Graphite Corporation and changed its name to Choom Holdings Inc. in November 2017. Choom Holdings Inc. was incorporated in 2006 and is based in Vancouver, Canada.
According to company materials, “The Choom brand is inspired by Hawaii’s “Choom Gang”- a group of buddies in Honolulu during the 1970’s who loved to smoke weed—or as the locals called it, choom. Evoking the spirit of the original Choom Gang, our brand is synonymous with cultivating good times with good friends. We are focused on delivering an elevated customer experience through our curated retail environments, high-grade handcrafted cannabis supply, and a diversity of brands for the Canadian recreational consumer.”
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As noted above, the stock has been holding above its recent range breakout as the company stares at ramping demand set to the hit the marketplace in October when the recreational legalization move is anticipated to take full effect.
Traders will note 39% piled on for shareholders of the stock during the trailing month, a bounce that has taken root amid largely bearish action over the larger time frame. What’s more, the name has benefitted from a jump in recent trading volume to the tune of above 220% over the long run average. It pays to take note of this fact with a float in play that’s extremely small — of 21 million shares.
“Bringing Kyp onboard significantly strengthens our team as we continue to develop prepare for when the Canadian recreational cannabis market commences on October 17, 2018, states Chris Bogart, President and CEO of Choom. “Kyp brings over 20 years of domestic and international premium cultivation and genetic development expertise to Choom, having operated award-winning production facilities overseas and throughout North America. The appointment of Kyp lends further strength to Choom building one of the leading recreational cannabis brands, based on premium, hand-crafted products that we believe will resonate strongly with the market.”
Currently trading at a market capitalization of $96M, CHOOF has a significant war chest ($10M) of cash on the books, which is balanced by virtually no total current liabilities. The company is pre-revenue at this point. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $CHOOF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CHOOF, either long or short, and we have not been compensated for this article.