TORONTO, March 13, 2019 /CNW/ - Namaste Technologies Inc. ("Namaste" or the "Company") (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced that it has completed the previously announced acquisition of 49% of the common shares of Toronto-based Pineapple Express Delivery Inc. ("Pineapple Express"). In June 2018, the Company announced that it had entered into a subscription agreement to acquire 15% of the common shares of Pineapple for $1,000,000 which comprised of $850,000 in cash and $150,000 in Namaste common shares (the "Subscription Agreement"). In December 2018, the Company announced that it had entered into a binding agreement (the "Purchase Agreement") with shareholders of Pineapple Express to acquire an additional 34% of the outstanding common shares of Pineapple Express. Pursuant to the terms of the Purchase Agreement, the Company issued the selling shareholders of Pineapple Express such number of Namaste common shares having an aggregate value of approximately $3.06 Million, based on the closing price of Namaste's common shares on the TSX Venture Exchange on December 14, 2018 (the "Transaction"). Following closing of the Transaction, Namaste now owns 49% of the issued and outstanding common shares of Pineapple Express.
Under the terms of the Subscription Agreement dated June 2018, Namaste has the right to acquire an additional 10% of the common shares of Pineapple Express for $1,200,000 within 14 months from closing of the Subscription Agreement. In connection with the completion of the Transaction, Darren Gill, Chief Strategy Officer of the Company, will be appointed to the as a director of Pineapple Express.
"Pineapple Express is a premier delivery company when it comes to cannabis in Canada, and we look forward to working closely with Randy and his team to continue to grow the business," said Meni Morim, Interim CEO of Namaste Technologies Inc. "The acquisition of the shares of Pineapple Express is an important component in Namaste's growth strategy and customer service platform, and shows follow-through, as we continue to operate business as usual and moving forward. Having Pineapple Express as part of our family is an efficient way to get medicinal cannabis to customers in the Greater Toronto Area and across Canada as quickly and efficiently as possible. We remain focused on execution of our 2019 strategy and are pleased to have seen this project through."
Namaste's purchase of shares of Pineapple Express supports the Company's strategy to invest in innovative companies which bring value to the Company and to the broader market as a value service for Cannmart.com, Licensed Producers and regulated dispensaries. Namaste believes that same-day delivery for medical and recreational cannabis through Pineapple Express' platform will provide patients and consumers with added-value now and expanded service potential as the Pineapple Express platform expands.
"We're very happy to become a partner with Namaste through their investment," said Randy Rolph, CEO of Pineapple Express Delivery Inc. "Pineapple Express has made great strides and works with some of the top cannabis companies in Canada, and we look forward to continue to grow our network with the support of Namaste."
About Pineapple Express Delivery Inc.
The Pineapple Express Delivery Inc. management team has over 10 years of experience offering same-day, 60-minute delivery services in multiple industries across Canada. 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 and recreational cannabis across the country. Pineapple Express has been providing a same day delivery option to the legal cannabis industry from October 17th, 2018 and has provincial offices set up across Canada. For more information visit: www.pineappleexpressdelivery.com
About Namaste Technologies Inc.
Namaste Technologies powers the ultimate online customer experience for medicinal cannabis and related products. Beginning with NamasteMD.com, the Company's integrated telemedicine application, we connect medical clients with health care practitioners to more readily issue and renew cannabis prescriptions online. Featuring the first Canadian Medical Sales-Only Licence, the Company's own Cannmart.com is your 'everything cannabis store' offering clients a large variety of strains to fill their prescription needs. Namaste's unique artificial intelligence (AI) engine incorporated in its platforms and related Uppy App, completes our ecosystem by identifying the right product and pairing to address specific medical cannabis requirements. Namaste also provides vaporizers and accessories across several platforms operating in more than 20 countries. Namaste's global technology addresses local needs in a burgeoning cannabis industry requiring smart solutions. For more information about Namaste, please visit www.Namastetechnologies.com
Further information on the Company and its products can be accessed through the links below:
FORWARD-LOOKING INFORMATION - This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. The forward-looking information contained in this press release, includes, but is not limited to, statements with respect to the Company's strategy of leveraging its technologies and acquiring new innovative technologies and the expected benefits thereof.
The forward-looking information contained herein is made as of the date of this press release and is based on assumptions management believed to be reasonable, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct.
By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: risks relating to the market price of the Common Shares and risks relating to the Company's ability to execute its business strategy and the benefits realizable therefrom.
Additional risk factors can also be found in the Company's current MD&A and annual information form, both of which have been filed under the Company's SEDAR profile at www.sedar.com.
Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.
SOURCE Namaste Technologies Inc.
For further information: Incite Capital Markets: Darren Seed / Eric Negraeff, Ph: 604.493.2004; Meni Morim, Interim CEO, Email: [email protected]