The cannabis frenzy is increasingly moving into the US market, and a new example of that phenomenon is Choom Holdings Inc (OTCMKTS:CHOOF). The company just announced it is entering the United States, starting with the state of New Jersey. That announcement has helped to kick up the dirt on the tape and power prices higher by nearly 100% over the past couple days.
According to the release, “Choom through its wholly owned US subsidiary, Choom Holdings USA Inc., has signed a letter of intent to purchase an equity interest in a New Jersey based medical retail dispensary applicant in New Jersey’s upcoming Request of Applications that also intends to enter into recreational cannabis retail upon legalization, which is anticipated in 2020. The NJ Company is advancing on its retail store strategy in New Jersey with the intention of receiving licenses to operate the maximum allowable cannabis stores for medical and eventually adult use when formally approved by the State.”
Choom Holdings Inc (OTCMKTS:CHOOF) trumpets itself as a company that, through its subsidiary, Medi-Can Health Solutions Ltd, engages in cultivating and selling cannabis for medical purposes and related products.
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, “Choom is an emerging adult use cannabis company that has secured one of the largest retail networks in Canada. 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 caters to the Canadian adult use market with the ethos of cultivating ‘Good Times with Good Friends’. Choom is focused on delivering an elevated customer experience through our curated retail environments, offering a diversity of brands for Canadians across a national retail network.”
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As noted above, CHOOF just announced it is entering the United States, starting with the state of New Jersey.
Recent action has seen 78% during the past month in terms of shareholder gains in the listing. Moreover, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running a bit over 300% beyond what we have been seeing over the larger time frame.
“This is our first step into the United States, and we are very excited for our partnership with this experienced group to have the Choom Brands in New Jersey,” states Chris Bogart, President & CEO of Choom Holdings Inc. “New Jersey is home to over 9 million people currently being served by only 12 cannabis operators in its medical program. New Jersey is an exceptional market to expand the Choom Brands. We are very impressed with the progress they have achieved to date, and with our expertise in cannabis retail, we are confident we can help them successfully operate in the New Jersey market.”
Earning a current market cap value of $112.82M, CHOOF has a significant war chest ($17.4M) of cash on the books, which stands against about $805K in total current liabilities. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. 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.