VANCOUVER, June 18, 2018 /CNW/ - Namaste Technologies Inc. ("Namaste" or the "Company") (TSXV: N)(FRA: M5BQ)(OTCMKTS: NXTTF) is pleased to announce that further to its January 18th, 2018 letter of intent ("LOI"), that the Company has signed a subscription agreement (the "Agreement") to acquire 10% of the issued share capital of Israeli licensed producer of medical cannabis, Cannbit Ltd ("Cannbit") for NIS 2,500,000 or approximately CAD $908,000, which includes a combination of both cash and shares.
Subsequently, Cannbit has also signed a binding agreement to complete a merger with a company listed on the Tel Aviv stock exchange, whereby Cannbit will retain 85% ownership of the combined public entity, The Company believes that its investment will be immediately accretive in nature based on the valuation metrics of the transaction which consequently valued Cannbit significantly higher than what Namaste acquired its 10% equity stake for. In anticipation of closing this transaction, Namaste has established a supply arrangement with Cannbit to export cannabis to the Canadian market (subject to approval by Health Canada and the Israeli government), and will also engage with Cannbit to expand the Company's Israeli-based vaporizer sales platform.
Namaste remains focused on establishing domestic and international supply arrangements and investments that will secure supply channels of high-quality medical cannabis for the Company's wholly-owned subsidiary, Cannmart Inc. ("Cannmart"). This transaction validates our strategy of sourcing quality cannabis products abroad and introducing them to the Canadian market. Early signs indicate that international cannabis producers are eager to penetrate the Canadian market, and view Namaste as a valuable resource in expanding their market share on an international level. In a relatively short period of time, Namaste has managed to solidify its position as an innovator in e-commerce technology and will leverage its multiple supply arrangements to offer Canadian patients a more diverse offering of cannabis products while remaining focused on its overall vision creating a better user experience.
Yaron Razon, co-founder and CEO of Cannbit comments: - "We are very pleased to have Namaste join as an investor in Cannbit. Namaste is a global leader in cannabis technology and their investment in Cannbit reinforces their confidence in our management team. We intend to work closely with Namaste to promote joint business activities in Israel and in Canada including the development of unique products and technologies."
Sean Dollinger, President and CEO of Namaste comments: - "We are once again excited to be closing on another strategic business arrangement that is helping Namaste bring international awareness to its platform. We feel extremely excited to not only be working with a licensed Israeli producer but to be making a strategic long-term investment for the company and our shareholders. As a pioneer of cannabis research and development, we believe Israel will play an important role in the overall cannabis market and this transaction puts the Company in a great position moving forward. We feel very optimistic about the rate at which we have been able to close on many key initiatives and fully expect to continue accelerating our efforts to expand our product offering through our platform. We believe our platform offers many advantages over traditional e-commerce sites as we continue to build a revolutionary platform. As our world-class team continues to expand we fully expect to see more international relationships formed in our quest to offer our customers a truly unique."
About Cannbit Ltd.
Cannbit is focused on growing high-quality medical-grade cannabis with advanced technology and agriculture platform while utilizing the best human resources to produce the highest level of quality available that will effectively treat a wide range of illnesses. The Israeli government is expected to approve the export of medical cannabis and Cannbit intends to become Israel's leading exporter for medical cannabis to legal jurisdictions around the globe. Cannbit's facility is 4,000 square meters with an additional 10,000 square meters available for expansion and is located in Neot Hakikar, an area well known in the Israeli agricultural community with clear advantages in the cold seasons. Our cultivation is carried out in a sophisticated greenhouse that provides ideal conditions for a variety of cannabis strains. Cannbit's management is comprised of a group of industry professionals in relevant disciplines.
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