Choom Holdings (OTCQB: CHOOF) has signed a deal to expand into Florida as part of its strategy to become a multi-state operator.
Choom, through its US subsidiary Choom Holdings USA, has signed a letter of intent to purchase a 95% equity interest in a Florida-based cannabis applicant (the FL Company).
The FL Company is progressing on its master license application to operate up to 25 retail locations with potential for more as the number of registered patients increase, as well as a micro-processing and cultivation facility for medical purposes.
Upon completing the transaction, Choom will use its medical brand, Clarity Medical Centres, to create a network of branded Medical Marijuana Treatment Centers.
The terms of the LOI are not disclosed. The agreement was signed by Choom subsidiary Choom Holdings USA.
Florida Cannabis Market
Florida’s medical marijuana program has over 190,000 qualified patients, up from approximately 168,000 at the start of 2019, making it the largest medical marijuana market in the United States.
Florida has recently allowed the use of smokable medical marijuana products, potentially opening the program to a considerably larger audience.
“We are very excited to be expanding into Florida and to bring Choom’s medical brand into that market. Florida’s medical marijuana program is a very attractive opportunity for us seeing that it allows for vertically-integrated operations and it has been a market we’ve had our sights on for a while now.” states Chris Bogart, President & CEO of Choom.
Earlier, Choom inked a letter of intent to acquire an equity interest in a New Jersey-based medical retail dispensary applicant in the state’s upcoming request of applications.