VANCOUVER, Nov. 26, 2018 /CNW/ - Namaste Technologies Inc. ("Namaste" or the "Company") (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) is pleased to announce that the Company has signed a Subscription Agreement (the "Agreement"), whereby the Company has completed an investment of $250,000 to acquire 46,729 Class B common shares of Kief Cannabis Company Ltd. ("Kief Cannabis") at a cost of $5.35 per share. Namaste's investment represents approximately 3% of the issued and outstanding shares of Kief Cannabis, based on an $8.1 million valuation.
Further to the Company's August 29, 2018 news release where Namaste's wholly-owned subsidiary, Cannmart Inc. ("Cannmart') signed a medical cannabis Supply Agreement (the "Supply Agreement") to purchase premium medical cannabis products from Kief Cannabis for sale on its online platform, Cannmart will now also have the right of first refusal ("ROFR") on 35% of the total production of cannabis from Kief Cannabis.
This investment and additional security of supply bolsters Namaste's objective to become Canada's premier online medical cannabis retailer. In September, the Company received its Access to Cannabis for Medical Purposes Regulations ("ACMPR") Sale for Medical Purposes licence, the first of its kind to be issued by Health Canada, allowing Canadian customers the ability to purchase medical cannabis from wide assortment of licensed producers through Namaste's platform, giving consumers the power of choice rather than having to register with just one LP.
Supply agreements and Investments like this in high-quality craft producers such as Kief Cannabis address the issues around selection and product shortage across Canada. Namaste is committed to supporting the craft grower through strategic investments and services like its Craft Program to ensure the widest possible assortment and ongoing supply of new products for its customers. Further to the November 19th, 2018 news release, the Company has also received a positive response from many craft cultivators who are interested in participating in the program.
Namaste has established itself as a global market leader, creating the world's largest online marketplace for cannabis, cannabis accessories, and other related products with more than 30 websites in 20 countries. It recently made significant investments in AI technology and machine learning platforms, helping customers to make strain-specific purchases based on their individual needs.
Kief Cannabis is a Manitoba-based, late-stage applicant to become a licensed producer subject to the terms of the Cannabis Act. Kief Cannabis is focused on developing high-quality craft cannabis products using only the best plant genetics and a refined production process that will to deliver high-grade, small-batch products. Namaste's financial investment in Kief Cannabis is part of a larger program to foster the growth of the craft cannabis market by offering long-term supply agreements that in turn benefit Cannmart's growing number of registered customers.
Jesse Denton, CEO of Kief Cannabis comments: "The entire team at Kief Cannabis is thrilled to have entered into a strategic relationship with one of the industry's most forward-thinking companies. Namaste's recent announcement regarding the launch of their craft cannabis and micro-cultivator platform will provide great exposure to smaller producers and further demonstrates our shared vision to bring high-quality products to customers.
Kief Cannabis is focused on providing artisan crafted cannabis products designed to deliver a premium quality experience. Our driving force is quality above quantity with an emphasis on rare genetics unseen in today's marketplace."
Sean Dollinger, President, and CEO of Namaste comments: "We're very pleased to announce this investment into Kief Cannabis. We strongly believe that craft cannabis products will add significant value to our platform through Cannmart and that many of the strains which we plan to introduce have not yet been seen on the market. By working with and supporting the craft market, we will bring long term value to the Company and to our patients. Thanks to Kief Cannabis and their team for understanding the value of what Namaste brings to craft growers and are excited to offer their products to our patients in the future.
About Kief Cannabis
Kief Cannabis Ltd. is a late-stage ACMPR craft producer focused on providing rare, sought-after strains of premium-quality cannabis. Kief Cannabis has received its Confirmation of Readiness letter from Health Canada and is currently working to complete build-out and anticipates receiving its production licence by December 2018.
About Namaste Technologies Inc.
Namaste Technologies is Your Everything Cannabis Store™. Namaste operates the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands. Namaste's product offering through its subsidiaries includes vaporizers, glassware, accessories, CBD products, and the company will soon be selling medical cannabis in the Canadian market.
Namaste has developed and acquired innovative technology platforms including NamasteMD.com, Canada's first Health Canada compliant telemedicine application, and in May 2018 the Company acquired a leading e-commerce AI and Machine Learning Company, Findify AB. Findify uses artificial intelligence algorithms to optimize and personalize a consumer's on-site buying experience. Namaste is focused on leveraging its cutting-edge technology to enhance the user experience throughout its platforms. 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: +1 604-355-6100
Email: [email protected]
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 TSXV has neither reviewed nor approved the contents of this press release.
SOURCE Namaste Technologies Inc.
For further information: Sean Dollinger, Chief Executive Officer, Direct: +1 604-355-6100, Email: [email protected]