TORONTO, March 6, 2019 /CNW/ - Namaste Technologies Inc. ("Namaste" or the "Company") (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced that it has entered into a share purchase agreement (the "Agreement") to acquire 49% of the issued and outstanding shares of Calgary, AB based Choklat Inc. for $1.5 million in cash consideration. As part of the acquisition, Namaste will be appointing a member to the Board of Choklat.
Choklat is a premium chocolate manufacturer with existing sales through its online eCommerce site and through a network of distributors across Canada. Choklat has recently entered into a supply relationship with Sobeys and already has product in 25 stores in Alberta with a goal to roll out in Western Canada and beyond in the coming months.
"Choklat is a great acquisition for us with a vast offering of existing products that can be easily infused with THC or CBD and sold as edibles," said Meni Morim, Interim CEO of Namaste Technologies Inc. "Their small batch manufacturing model is a great fit within the new proposed regulations for edible cannabis products. This transaction provides the security of supply and manufacturing for our medicinal cannabis customers and provides capacity for the recreational market in the event proposed regulations are passed."
"This is a great combination where Namaste recognizes the value of e-commerce and direct to consumer sales, and has the vision to help us grow by white-labeling products for all LP's and distribution through CannMart," said Brad Churchill, Founder and CEO of Choklat Inc. "Choklat will aim to make products for CannMart and expand its target market to include the overall cannabis space."
Choklat has hired industry experts Cannabis Consulting Inc. (CCI) to assist with the procurement of a Health Canada Federal Processing License.
"Almost two years ago I used my own prescription to personally research the concept of infusing chocolate and sugar with cannabis." said Brad Churchill, Founder and CEO. "As one of the only chocolate makers in Canada I had access to equipment and processes that other chocolatiers and confectioners don't have. My research led me to discoveries which, when legal, will allow us to infuse both THC and CBD into chocolate and sugar in such a way that there is absolutely no discernible "weed" flavour or smell, and with a dosage accuracy that is almost pharmaceutical grade."
Choklat Inc. is currently the only bean to bar chocolate maker in Alberta and the largest premium craft chocolate maker in Canada. Where other chocolate companies simply purchase bulk chocolate to make their confections, Choklat imports some of the finest and rarest cocoa beans in the world, then roasts and refines them in-house to make the company's own proprietary chocolate which is used in all of their confections. Since opening for the first time in 2008, Choklat has established itself throughout Western Canada as one of the most prominent luxury brands on the market today. Choklat's products are now in over 70 different retailers throughout Western Canada. Choklat has also just expanded regionally into Sobeys and Safeway stores – making it into more than 25 stores in the past two weeks alone. For more information, visit: www.Choklat.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 risk's 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.
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Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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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]