Namaste Enters the Edibles Market with 49% Acquisition of Choklat
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
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
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SOURCE Namaste Technologies Inc.