Shifting market conditions and political gridlock delay ability to identify and complete qualifying transaction with permitted timeline
TORONTO, July 22, 2022 (GLOBE NEWSWIRE) — Choice Consolidation Corp. (NEO:CDXX.UN.U) (OTCQX:CDXXF) (the “Company”) announced today that its board of directors has determined that the Company will be wound-up in accordance with its articles and the policies of the NEO Exchange and that the Company’s Class A restricted voting units (the “Class A Restricted Voting Units”), each comprised of one Class A restricted voting share (each a “Class A Restricted Voting Share”) and one-quarter of a warrant (a “Warrant”), will be automatically redeemed on or about August 16, 2022, (the “Redemption Date”). The Company’s board of directors has determined that it is in the best interests of the Company and its shareholders for the Company to be wound-up as they do not believe that an appropriate qualifying transaction can be identified and completed within the Company’s permitted timeline.
“While the creation of the legal and regulated cannabis industry presents the opportunity to harness growth potential of a burgeoning industry, the current shifting market conditions and partisan political gridlock have made our current pathway too unpredictable. After careful review and consideration, we believe it is in the best interest of our shareholders to return their investments at a time when it can be better deployed in other vehicles. Our passion and confidence in the cannabis sector have not waned, and I look forward to unlocking future opportunities in the industry,” said Joe Caltabiano, CEO of Choice Consolidation Corp.
The redemption amount per Class A Restricted Voting Unit is anticipated to be U.S.$10.00. Each one-quarter of a Warrant forming part of a Class A Restricted Voting Unit will be redeemed for U.S.$0.10, and the remainder of the redemption price for such Class A Restricted Voting Unit will be payable in respect of the Class A Restricted Voting Share. Payment of the redemption amount, net of applicable taxes and other permitted deductions, will be made effective at the close of business on the Redemption Date and will constitute the Company’s final payment in respect of the liquidation of the escrow account that holds the proceeds of the Company’s initial public offering. There will be no distributions from the escrow account with respect to the Company’s Class B shares or the 5,000,000 Warrants issued to the Company’s sponsors concurrently with the closing of the IPO.
The Company’s Class A Restricted Voting Units will be delisted from the Neo Exchange and the OTCQX Market following the redemption of the Class A Restricted Voting Units.
Choice Consolidation’s acquisition strategy focused on strategically important limited license states, and the company was looking to acquire single-state operators, distressed assets and rehabilitation licenses. However, current conditions favor single-state operators maintaining the status quo until capital is flush to create operating scale. When favorable tax benefits are available and cannabis marketing and branding is normalized nationwide, conditions will improve for single-state operators to enter the public market.
About Choice Consolidation Corp.
Choice Consolidation Corp. is a Special Purpose Acquisition Corporation (SPAC) created to identify existing opportunities toward the development of a new multi-state operator in the rapidly growing cannabis space. Co-founded by leading business pioneers in the industry, Choice Consolidation Corp. leverages years of experience, in-depth industry knowledge and nationwide relationships to acquire businesses in key targeted markets in order to create next-generation multi-state operators. For more information, visit www.choiceconsol.com or contact email@example.com by email.
FOR FURTHER INFORMATION PLEASE CONTACT:
Choice Consolidation Corp.
Shawna Seldon McGregor
Investor Relations Contact:
Cody Slach or Jackie Keshner