VANCOUVER, British Columbia, April 05, 2018 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (CSE:N) (FRANKFURT:M5BQ) (OTCMKTS:NXTTF) is pleased to announce that the Company has signed a non-binding letter of intent (“LOI”) with 2624078 Ontario Inc., whereby Namaste would acquire 51% of the share capital of 2624078 Ontario Inc., which will undertake an application to become a Licensed Dealer (“LD”) of medical cannabis, in accordance with Health Canada regulations. Licensed dealers are authorized to perform research and development, analytical testing and conducting clinical studies with medical cannabis as well as importing medical cannabis for research purposes. The location for the LD facility is at 7 Canso Road in Etobicoke, Ontario and directly across the street from Namaste’s wholly owned subsidiary, Cannmart Inc.’s Access to Cannabis for Medical Purposes (“ACMPR”) facility. The purpose of Namaste’s investment and partnership with 2624078 Ontario Inc. is to facilitate research and development of medical cannabis extracts as well as for testing of imported medical cannabis products in accordance with ACMPR guidelines. Namaste’s partnership with 2624078 Ontario Inc. reinforces Namaste’s position as a leader in the medical cannabis industry and helps ensure that it will be a first-mover in the research and production of cannabis concentrates as it anticipates a growing demand for extracts in the future.
Key LOI Terms:
- Namaste will acquire 51% of the share capital of 2624078 Ontario Inc.
- Namaste and will provide debt financing of up to $750,000 CAD to complete construction of the LD facility.
- 2624078 Ontario Inc.’s existing management team will sign 3-year management agreements to provide operational oversight of the facility.
- Both parties will have 30 days from the date of execution of the LOI to negotiate terms of definitive documentation which will include a share purchase agreement and management agreements.
- The facility at 7 Canso Road will be constructed to meet ACMPR standards
The LOI and proposed share purchase agreement represent a significant milestone for Namaste in securing a facility that will facilitate the importation of unique strains of medical cannabis for testing purposes, as well as research and production of high potency cannabis extracts. If an LD license is obtained, Namaste will be able to import medical cannabis from international partners for the purpose of testing the product against ACMPR standards. In addition to providing the ability to import medical cannabis for research purposes, the LD license would also allow Namaste to begin research and development of medical cannabis extracts. Currently, the Company estimates that cannabis extract sales in the US represent over 50% of all dispensary sales. As Namaste anticipates further expansion of Canada’s legal medical cannabis platform, it expects to see significant industry trends towards these higher potency products. This LOI and the implications of obtaining an LD license for Namaste would ensure the Company’s position in what it expects to become a strong segment of the Canadian medical cannabis industry in the future.
Daniel Stern, President and CEO of 2624078 Ontario Inc. comments; “We are very excited to be working with Namaste on this project. We believe that our experience in cannabis extraction technology and many years of experience in the general cannabis industry will facilitate the success of this partnership with Namaste, who we believe is a leading innovator in the Canadian medical cannabis community.”
Sean Dollinger, President and CEO of Namaste comments; “We are very pleased to have signed this LOI as we feel confident in the future of medical cannabis extracts in the Canadian marketplace. Although high potency concentrates are not yet approved under ACMPR regulations, the LD license will provide Namaste with the opportunity to take the first steps towards not only researching and producing extracts but also engage in the process of importing medical cannabis for testing purposes. The management team of 2624078 Ontario Inc. has shown confidence in Namaste’s leadership abilities as demonstrated through our success in the industry to date. The launch of NamasteMD and our pending ACMPR sales license coupled with this LOI and the application for an LD license are important building blocks to solidify Namaste’s position as a leader in the Canadian medical cannabis industry.”
About Namaste Technologies Inc.
Namaste is the largest online retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through 24 e-commerce sites in 20 countries and with distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the UK, Canada and Germany and has opened new supply channels into emerging markets including Brazil, Mexico and Chile. Namaste, through its acquisition of Cannmart Inc., is pursuing a new revenue vertical in online retail of medical cannabis in the Canadian market. Namaste intends to leverage its existing database of Canadian cannabis consumers, along with its expertise in e-commerce to create an online marketplace for medical cannabis patients, offering a larger variety of product and a better user experience.
On behalf of the Board of Directors
Chief Executive Officer
Direct: +1 (786) 389 9771
Further information on the Company and its products can be accessed through the links below:
FORWARD LOOKING INFORMATION This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, Namaste assumes no responsibility to update or revise forward looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The CSE has neither reviewed nor approved the contents of this press release.
Source:Namaste Technologies Inc.