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Aurora to invest C$7M in premium cannabis provider

Aurora Cannabis Inc. said it will invest C$7 million in Choom Holdings Inc., a cannabis company focused on the premium segment of Canada's adult consumer use market.

In exchange for the investment, Aurora will acquire 9,859,155 Choom common shares priced at 71 Canadian cents each, representing an 8% ownership.

"Our investment in a consumer-focused brand with a strong retail strategy offers Aurora additional growth opportunities through supply, retail and distribution to the adult consumer use market," Aurora CEO Terry Booth said in a news release.

Vancouver, British Columbia-based Aurora, together with its subsidiaries, produces and distributes medical cannabis. The company has been acquiring stakes in local cultivators and developers.

Choom Holdings was formerly known as Standard Graphite Corp. and changed its name to Choom Holdings in November 2017.