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CHOO - Choom Holdings Inc News Story

C$0.125 0.0  0.0%

Last Trade - 09/04/21

Micro Cap
Market Cap £23.6m
Enterprise Value £40.9m
Revenue £10.7m
Position in Universe 1254th / 2707

Choom Announces Q1 2021 Financial Results - Reporting Record Revenue of $6.1 million

Tue 1st December, 2020 12:00pm
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VANCOUVER, British Columbia, Dec. 01, 2020 (GLOBE NEWSWIRE) -- Choom Holdings
Inc. (“Choom” or the “Company”) (CSE: CHOO; OTCQB: CHOOF), a
fast-expanding retail cannabis company that has established one of the largest
store networks in Canada, is pleased to report its financial and operating
results for the first quarter of fiscal 2021 ending September 30, 2020.

First Quarter Financial Highlights:
* Q1 2021 revenue of $6.1M
     • Increase of $2M and 50% over Q4 2020 revenue of $4.1M
* Q1 2021 Gross Margin of 36.33%
     • Increase of 3.06% over Q4 2020 gross margin of 33.26%
* Q1 2021 G&A of $1M or 15.74% of revenue
     • Versus $1.2M or 28.68% of revenue Q4 2020
* Q1 2021 Salary and Wages of $1.1M or 18.24% of revenue
     • Versus $0.8M or 20.17% of revenue Q4 2020
First Quarter Divisional Highlights:

Choom continues to make strides in our strategic path to profitability,
increasing sales while right sizing expenditures, improving margins, and
inventory efficiency through our centralized product team resulting in
positive adjusted EBITDA( 1) for the quarter of $35K.

As we move forward with our new store growth strategy, ground has broken in
Yaletown, Vancouver, with an opening set for January 2021. Additionally, a
4(th) development permit was secured in Vancouver, further creating
defensibility amongst other national competitors.

During the quarter, we re-opened the Westlock store location that had been
previously closed due to COVID-19. Additionally, in Q2 we re-opened Camrose
48(th), another location that was previously closed, bringing our open and
operating store count to 14.


Choom’s marketing vision receives industry recognition, with nominations for
three prestigious awards by ADCANN this November: Storefront Brand of the
Year, Marketer of the Year and Best Social Media of the year. Our digital
development also continues as we enhance our industry-leading technology on
Choom’s 2.0 digital platform, further positioning ourselves as a technology
enabled Cannabis retailer, supporting our strategic pillar of creating a true
omni-channel experience.


The further centralization of our business model continues to attract top
talent both at our store support center as well as at our retail locations.
Work continues to bring key functions of our team in-house, reducing reliance
and costs related to contractors and consultants, allowing for improved
business support.

About Choom™

Choom™ is a fast-expanding retail cannabis company that has established one
of the largest store 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 market
with the ethos of ‘cultivating good times’. 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.           

Cautionary Statement on Forward-looking information   

This news release contains forward-looking information relating to the
Company's proposed activities and other statements that are not historical
facts. Forward-looking information relates to management's future outlook and
anticipated events or results and includes statements or information regarding
the future plans or prospects of the Company. Although management of the
Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward looking
information, there may be other factors that cause results not to be as
anticipated, estimated or intended. These factors include risks and
uncertainties associated with or arising as a result of delays in obtaining or
an inability to obtain required regulatory approvals, access to sufficient
quantities of cannabis, the results of diligence investigations, the actions
of third parties, the results of negotiations with third parties, developments
in the cannabis sector, the ability to access sufficient capital from internal
and external sources, reliance on key personnel, regulatory risks and delays
and other risks and uncertainties discussed in the management discussion and
analysis section of the Company's interim and most recent annual financial
statement or other reports and filings, including those made with the CSE and
applicable Canadian securities regulators. There can be no assurance that such
forward looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward
looking information. 

1: Non-IFRS Measures – Adjusted EBITDA
Adjusted EBITDA is a Non-IFRS metric used by management and does not have any
standardized meaning prescribed by IFRS. The metric may not be comparable to
similar measures presented by other companies. Management defines Adjusted
EBITDA as the Income (loss) for the period, as reported, before accretion,
interest, tax, share-based compensation, depreciation and amortization,
impairment, gains and losses related to the disposition of tangible assets,
debt extinguishments and professional fees associated with financing and
acquisition activities. Management believes Adjusted EBITDA is a useful
financial metric to assess its operating performance.


For additional information contact:

Corey Gillon, CEO                        
Telephone: 604-683-2509

Chris Bogart, President
Telephone: 604-683-2509        

GlobeNewswire, Inc. 2020
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