VANCOUVER, June 13, 2018 /CNW/ - Namaste Technologies Inc. ("Namaste" or the "Company") (TSXV: N) (FRA: M5BQ)(OTCMKTS: NXTTF) is pleased to announce that further to its April 25th, 2018 announcement of a Letter of Intent with Pineapple Express Delivery Inc., the Company has signed a Subscription Agreement (the "Agreement") to acquire 15% of the share capital of Pineapple Express Delivery Inc. for $1,000,000. Additionally, Namaste is pleased to announce that Pineapple Express Delivery Inc. has secured a Courier Services Agreement with Ample Organics, Canada's leading seed-to-sale software platform, for same-day cannabis delivery. Both transactions validate Namaste's position as a leader in cannabis focused technology platforms, and further demonstrate Namaste's ability to identify these value-added services aimed at enhancing the user experience. Namaste is optimistic about its equity investment in Pineapple Express Delivery Inc. and expects to see an immediate impact to the overall business operation.
Terms of the Agreement:
- Namaste's investment of $1,000,000 will be comprised of $850,000 in cash and $150,000 in Namaste common stock issued at a deemed price determined by Namaste's 5-day VWAP as of June 15, 2018, subject to approval by the TSX Venture Exchange.
- The $850,000 cash component of the investment will be paid over 12 monthly instalments to be used in accordance with an agreed use of proceeds.
- Namaste has a right of first refusal to acquire an additional 10% interest in Pineapple Express Delivery Inc. for $1,200,000 for 14 months following the closing date.
- Namaste will issue 150,000 options to purchase common shares pursuant to a consulting agreement entered into between Namaste and a principal of Pineapple Express Delivery Inc.
Namaste plans to work directly with Pineapple Express Delivery Inc. and Ample Organics to secure clients and expand the same-day delivery platform across Canada. Through an API integration with Ample Organics, Pineapple Express Delivery Inc. will have the ability to offer same-day delivery services to all licensed producers which are registered clients of Ample Organics. Namaste remains focused on developing and acquiring leading technology platforms that bring value to the cannabis industry. This Agreement represents a significant milestone for the Company in diversifying its investments in innovative companies, while at the same time having the ability to offer valuable services for its medical patients. Namaste's goal is to evolve the current landscape for online retail cannabis products by improving the user experience.
Randy Rolph, President and CEO of Pineapple Express: "We're very excited to have Namaste as a strategic partner. Our team has extensive experience in implementing same-day delivery platforms across Canada. Our relationship with Namaste and Ample Organics will bring great value to Pineapple Express Delivery Inc. and our growth strategy. Our goal is to offer Canadians with same-day delivery for their medical and recreational cannabis. Our vision and culture is aligned with Namaste's management team who provide valuable resources to Pineapple Express Delivery Inc. and we're very much looking forward to a bright future together."
Sean Dollinger, President and CEO of Namaste comments: "We'd like to thank Randy and his incredible team at Pineapple Express Delivery Inc. for partnering with Namaste in an effort to offer Canadian consumers access to same-day cannabis delivery. In addition, we are extremely excited to welcome Ample Organics as a Pineapple Express Delivery Inc. client, in an effort to reach as many cannabis patients as possible across Canada. Having worked with Ample Organics on separate initiatives, we see the incredible value they are able to bring and are very optimistic that other industry leaders will follow suit, as same-day delivery service becomes a necessity among cannabis users world-wide. Namaste will continue to work in partnership with industry leaders to enhance the overall user experience online and at the same time bring value to the Company and its shareholders. We're very proud of our partnership with Pineapple Express Delivery Inc. and anticipate a strong demand for their services through Ample Organics' platform."
About Pineapple Express Delivery Inc.
Pineapple Express' management team has over 10 years of experience offering same-day 60-minute delivery services in multiple industries across Canada, and has successfully integrated with Ample Organics Inc., Canada's leading seed-to-sale medical cannabis software platform. Pineapple Express offers a personalized experience for its customers and has established in depth security and delivery protocols to facilitate same-day delivery of medical cannabis across the country. Pineapple Express is dedicated to providing patients with a fully integrated, simple to use, same-day delivery platform which it believes brings great value to medical patients across the country. For more information visit: www.pineappleexpressdelivery.ca
About Namaste Technologies Inc.
Namaste Technologies is a global leader in the sale of medical cannabis consumption devices. Namaste has nine offices with multiple distribution centers around the globe and operates over 30 websites under various brands. Namaste has developed innovative technology platforms including NamasteMD.com, Canada's first ACMPR compliant telemedicine application. The company is focused on patient acquisition through NamasteMD and intends on building Canada's largest database of medical cannabis patients. The company's subsidiary, CannMart Inc. is an ACMPR Licensed Producer pending receipt of a "sales-only" license, whereby the company will offer a large variety of medical cannabis sourced from domestic and international producers. Namaste will continue to develop and acquire innovative technologies which will provide value to the Company and to its shareholders as well as to the broader cannabis market.
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. Neither the TSX Venture Exchange nor its market regulator has reviewed or approved the contents of this press release.
SOURCE Namaste Technologies Inc.
For further information: Sean Dollinger, Chief Executive Officer, Direct: +1 (786) 389 9771, Email: email@example.com