VANCOUVER, British Columbia, May 10, 2018 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV:N) (FRANKFURT:M5BQ) (OTCMKTS:NXTTF) is pleased to announce that further to the April 5th announcement of an LOI with 2624078 Ontario Inc., the Company has signed a Share Purchase Agreement (“SPA”) to acquire 51% of the outstanding shares of 2624078 Ontario Inc. (“Infinite Labz”) and has agreed to finance the construction of Infinite Labz’s facility in Etobicoke, Ontario.
Infinite Labz intends to submit an application to become a Health Canada Licensed Producer (“LP”) of medical cannabis oil, with the intention of resale to both the medical and recreational markets. Infinite Labz also intends to apply to become a Licensed Dealer (“LD”) of medical cannabis in accordance with Health Canada regulations, allowing the company to initiate research and development, import cannabis, perform analytical testing, and conduct clinical studies with medical cannabis, dried flower, and oil.
Namaste anticipates an accelerated demand for cannabis oils and believes that a dedicated facility designed for the sole purpose of producing oils and extracts can provide the Company with a strong supply of high-margin oil products. Following completion of construction and licensing, the facility will allow Infinite Labz to produce oils and extracts at a low cost for sale to registered patients of Namaste’s wholly owned subsidiary, Cannmart Inc. (“Cannmart”), resulting in increased margins for Namaste. Inifinite Labz also plans to produce and sell oils/extracts directly to other LP’s, and participate in the recreational market by selling its products to licensed provincial distributors. The Company also intends to use its hardware experience to produce specialized pod-based vaporization systems for use with oil formulations. Namaste has established a strong brand through its existing retail channels and intends on building on that unique brand in the Cannabis oil sector through Infinite Labz.
If an LD license is obtained, Infinite Labz will facilitate importation of medical cannabis for testing purposes, following which an application for approval from Health Canada to import for resale purposes can be made. The LP license, in combination with the LD license would allow Infinite Labz to gain full exposure to the exciting segment of the medical cannabis industry through importation, testing, and production of cannabis oils and extracts.
Key SPA terms:
Sean Dollinger, President and CEO of Namaste comments: “We are very pleased to have entered into a definitive agreement as we believe that the facility at Infinite Labz can be instrumental in allowing Namaste to participate in the recreational market. In addition, the facility would allow Namaste to control the production and distribution of cannabis oil for sale through Cannmart, as well as for resale to LP’s. We believe that having the ability to offer oil production services for smaller craft producers through Infinite Labz will add significant value moving forward as we look to develop relationships with all types of LPs that enable us to provide our patients with a broad range of cannabis products. Our hope is that these services will lead to additional opportunities with LP's who see value in working collaboratively. In addition to producing oil through the facility, Cannmart plans on providing oil filling services for pre-filled cartridges and vaporizers pods once approved by Health Canada. This facility will not only support the Company’s growth in the sale of medical cannabis but it will also ensure that we stay ahead of the curve in anticipation of federal changes to the legal cannabis industry.”
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 with 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. The CSE has neither reviewed nor approved the contents of this press