VANCOUVER, British Columbia, Dec. 22, 2017 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (CSE:N)(OTC:NXTTF)(FRANKFURT:M5BQ) is pleased to announce that its wholly owned subsidiary Cannmart Inc. (“Cannmart”) has signed a Fulfilment Services Agreement (the “Agreement”) with Greenlane Canada (“Greenlane”) whereby Greenlane will provide exclusive order fulfilment and warranty services for Namaste’s Canadian websites. Under the terms of the Agreement, Greenlane will fulfill orders for all products set forth in Greenlane’s product offering as well as products which are marketed and sold under brands controlled by Namaste and other third-party products as specified by Namaste. The Agreement represents a strategic decision to further align the Company with the industry’s leading business-to-business distributor, while Namaste will benefit through a significant reduction of inventory and operational expenses, bringing the company closer to profitability. Since inception, Namaste has maintained a strong working relationship with Greenlane and believes that this Agreement is accretive in nature. In addition, it is believed this Agreement will set the framework for Namaste to collaborate with Greenlane on future opportunities in areas related to the distribution of cannabis packaging products and pre-filled cartridges for medical cannabis, to be sold in Canada through Namaste’s wholly owned subsidiary Cannmart.
Key Terms of the Agreement
Greenlane will provide order fulfillment for direct website and wholesale sales.
Greenlane will provide all services related to inventory owned and maintained by Greenlane, including pulling, packing and shipping orders.
Greenlane will make a one-time purchase of inventory specified by Namaste based on 360-day payment terms, to ensure adequate inventory levels.
Greenlane shall be responsible for warehousing of Namaste’s inventory including the costs of rent, fixtures, insurance and shrinkage.
Services will be rendered in a manner consistent with Greenlane’s Standard Operating Procedures (“SOP”) for its own customers as it relates to:
Greenlane will provide Namaste with access to new products added to its catalogue.
Greenlane will provide technical services as it relates to repairs and warranty services for Namaste’s customers.
The Agreement with Greenlane represents a key component of Namaste’s strategy moving forward, and is expected to have an immediate impact on cash-flow. The partnership further demonstrates Namaste's commitment to focusing its resources towards the expansion of its global network, in an attempt to solidify its place in the Canadian market as the dominant player.
Additionally, Namaste remains diligent on launching medical cannabis sales in Canada, as it looks to first validate its platform and then expand into additional markets abroad. Namaste believes these combined initiatives will serve as a stepping stone in helping Namaste achieve its goal of reaching profitability, as it looks to capitalize on strategic partnerships with its peers.
Aaron LoCasio, Greenlane’s CEO comments: “Sean and the Namaste team have built an exceptional company that we are proud to work alongside. This agreement further aligns our respective organizations and allows us each to focus on our core competencies. Greenlane looks forward to working with the Namaste team as we each embark on this next phase of growth.”
Sean Dollinger, President and CEO of Namaste comments: “The signing of this agreement may very well be one of the most important initiatives Namaste has implemented to date, and may be the final piece of the puzzle in helping Namaste achieve profitability. The agreement itself represent months of negotiations which has culminated with an amazing partnership with easily the most influential business-to-business distributor in the space. Our decision to partner with Greenlane was directly correlated to their amazing range of products, and proven track record in securing exclusive distribution rights for the hottest new products ahead of the competition. In addition, we believe Namaste will capture market share in the extremely exciting pre-filled hardware space by leveraging Greenlane’s exclusive access to closed system products from the leading brands. This competitive edge will be instrumental in allowing Namaste the ability to offer our customers the latest products within the Canadian market.”
Greenlane is the leading distributor of premium brands in the burgeoning head shop, smoke shop, and dispensary channels. Since 2005, Greenlane has worked diligently to build a reputation as the industry leader by meeting the needs of our customers, suppliers, and the end-users of the products we distribute. The company has achieved this by offering the most innovative products at competitive prices, providing white glove customer service, and processing orders quickly with unparalleled, highly efficient operations and logistics. During this time, Greenlane has grown to over 150 employees with operations in 7 cities across the United States and Canada, including 5 highly automated distribution centers, and continues to grow by finding ways to better serve the needs of its customers and suppliers.
About Namaste Technologies Inc.
Namaste is the largest online retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through e-commerce sites in 26 countries and with 5 distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the UK, US, Canada and Germany and has opened new supply channels into emerging markets including Brazil, Mexico and Chile. Namaste, through its acquisition of Cannmart Inc., a Canadian based late-stage applicant for a medical cannabis distribution license (under the ACMPR Program) is pursuing a new revenue vertical in online retail of medical cannabis in the Canadian market. Namaste intends to leverage its existing database of Canadian medical cannabis consumers, along with its expertise in e-commerce to create an online marketplace for medical cannabis patients, offering a larger variety of product and a better user experience.
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 release.