TORONTO, July 26, 2019 /CNW/ – Namaste Technologies Inc. (“Namaste” or the “Company“) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today provided an update on in its investment portfolio including Choklat Inc. (“Choklat“) and Pineapple Express Delivery Inc. (“Pineapple Express“).
Choklat, in which Namaste acquired a 49% interest in March of 2019, has now completed and submitted its evidence package to Health Canada. Choklat has seen significant expansion while preparing for the legalization of edibles, with non-infused products now available in over 150 retail outlets across Canada, including an increasing number of Safeway and Sobeys’s stores in Western Canada. Choklat is making every effort to ensure that it can smoothly transition its business activities to a new facility nearby, transforming its current space into a state-of-the-art edibles processing facility.
“The submission of an evidence package to Health Canada is a major milestone for Choklat, and what we believe to be one of the first completed applications in the industry,” said Meni Morin, Interim CEO of Namaste Technologies. “Regulation changes announced by Health Canada in May require operators to have built a compliant facility before filing for a licence. By making a strategic investment in Choklat, and converting their existing facility, Choklat will be better prepared to meet these changes and go to market timeline. Pending approval from Health Canada, we anticipate production to begin immediately, potentially making Choklat one of the first to have product on the shelves.”
“Our team has worked diligently to grow our existing business, and ensure we are ready for potential legalization in October,” said Brad Churchil, CEO of Choklat. “Choklat currently has a non-binding agreement for edible products from a Montreal based company totaling over $3 million. Upon approval from Health Canada, we look forward to scaling rapidly to deliver on our commitments, while maintaining a focus on providing the premium product our customers know and love.”
Namaste also announces the advancement of funds related to a promissory note for Pineapple Express Delivery Inc. (“Pineapple Express“) for a total of $1,200,000 USD. The promissory note is due on March 31, 2020 and bears a 12% interest rate per annum. Under the original agreement dated July 8, 2018 Namaste has the opportunity to convert the loan into equity on August 14, 2019. If the agreement is executed, Namaste would hold a majority position in Pineapple Express.
“Cannabis delivery services provided by Pineapple Express complete our unique end-to-end business proposition and support our focus on the customer experience,” said Meni Morim, Interim CEO of Namaste Technologies. “Funding provided to Pineapple Express will allow them to scale and expand their presence, providing a seamless user experience for customers across Canada.”
On December 17, 2018, Namaste Technologies entered into a share purchase agreement to acquire common shares in Pineapple Express Delivery and an affiliated entity, representing an additional 34% equity in exchange for such number of common shares of Namaste having an aggregate value of approximately $3.1 million. The transaction closed on March 13, 2019 with Namaste now owning 49% of the issued and outstanding common shares of Pineapple Express.
About Choklat
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 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, Namaste connects medical clients with health care practitioners to more readily issue and renew cannabis prescriptions online.
For further information about Namaste, please log onto www.Namastetechnologies.com