CHOOF
Cannabis

Choom Holdings Inc (OTCMKTS:CHOOF) A Potential Breakout Play

Choom Holdings Inc (OTCMKTS:CHOOF) is a potential break out play, even on underperforming in 2018. Improved operational efficiency, as well as underlying fundamentals, are some of the developments that support a spike from current lows.

CHOOF Share Price Analysis

For starters, the company is fresh from signing a definitive agreement for the acquisition of Clarity Cannabis Retail Stores in Alberta. The company has also entered into a letter of intent for the opening of a retail location in Ontario as it seeks to strengthen its prospects in the adult use market.

The company has also completed a build-out of an e-commerce platform that it plans to use to strengthen sales channels in pursuit of revenues. In December, the company secured one of the largest retail networks in Canada as part of its robust retail strategy.

A plunge to all-time lows, late last year, might as well have provided an opportunity to purchase, at a premium, a stock with tremendous prospects. Recent developments continue to strengthen investor confidence in the stock depicted by a bounce back after a steep pullback from all-time highs.

CHOOF Daily Chart

The stock is already up by more than 20%, signaling a potential bounce back from one-year lows. For the stock to turn bullish, in the short term, it needs to rise and stabilize above the $0.50 mark, a critical psychological level.

Below the $0.50 mark, Choom Holdings remains vulnerable to further drops bearing in mind the long-term bear trend.

About Choom Holdings

Choom Holdings is an emerging adult use cannabis company that boasts of one of the most extensive retail networks in Canada. The company is focused on delivering an elevated customer experience on the distribution of adult use cannabis products through a diversified retail network.

Acquisition

Choom Holdings is a potential bounce-back play if recent developments are anything to go by. The company has confirmed the acquisition of Clarity Cannabis MD Holdings as it continues to strengthen its cannabis retail network. With the acquisition, the company gains access to 30 new retail locations licensed by the Alberta Gaming, Liquor & Cannabis Commission.

“Clarity has been successfully operating in Alberta since December and has submitted applications across the province. This transaction gives us a strong foothold in the Alberta retail landscape. Moving forward we will be working diligently to maximize our retail footprint Canada wide, and this transaction helps us to achieve that goal,” said Chris Bogart, President & CEO of Choom.

Choom Holdings has also entered into an agreement with a cannabis retail, lottery winner to open a new location in Ontario. The agreement paves the way for the company to establish a presence in the private retail market in the province.

Robust retail network

In addition, the company has completed a build-out of an e-commerce platform to supplement its brick and mortar sales operations. The new online storefront is to provide customized shopping experience and capable of scaling to $500 million in sales annually. With the new platform, the company remains well positioned to reach all consumers through all available retail channels.

The opening up of brick and mortar stores, as well as an online platform, is part of Choom Holdings push for one of the largest retail network in Canada. The company is planning to use the network to feature a curated selection of products from various licensed producers.

“As part of our strategic business plan to be a leading national cannabis retailer Choom has taken the necessary steps to assure our license applications comply with each provincial governing body across Canada. Choom has no plans to be a licensed producer and will focus exclusively on its adult use retail and medical centers, as well as, brands portfolio,” said CEO Chris Bogart.

Bottom line

After a roller coaster 2018, Choom Holdings is ready to turn the page if the way the management has been working round the clock to reinvigorate growth prospects is anything to go up. A push by the company to build out a robust cannabis retail network is taking shape.

The company has opened a number of stores as well as an online platform as it looks to target all customer channels in pursuit of revenues. The effort and investment should pay off, in the form of increased revenues in 2019.

Investors taking note of recent developments explain why the stock has started showing signs of bottoming out.

We will be updating our subscribers as soon as we know more. For the latest updates on CHOOF, sign up below!

Disclosure: We have no position in CHOOF and have not been compensated for this article.

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Choom Holdings Inc (OTCMKTS:CHOOF) A Potential Breakout Play
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