VICTORIA, British Columbia and VANCOUVER, British Columbia, Jan. 30, 2018 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics Inc. (“Emerald”) (TSXV:EMH) (OTC:EMHTF) and Namaste Technologies Inc. (“Namaste”) (CSE:N) (FRANKFURT:M5BQ) (OTC:NXTTF) have signed a Letter of Intent (“LOI”) whereby Namaste and Emerald propose to enter into a definitive agreement (the “Proposed Agreement”) to collaborate on strategic business opportunities worldwide and develop a fully-integrated e-commerce platform (the “Platform”) to serve as a retail channel for Emerald’s patients. Under the terms of the Proposed Agreement, the companies would leverage Namaste’s existing consumer databases, site traffic and e-commerce technology for marketing purposes along with Emerald’s pharmaceutical and biotech expertise to develop medical cannabis downstream products tailored to specific markets and patients.
The e-commerce platform will be developed using Namaste’s technology, including machine learning algorithms and advanced on-site optimization techniques, and is planned to be available on desktop and mobile devices. Through the Platform Namaste would make available its full product catalog of over 1000+ cannabis delivery devices to Emerald for sale to its patients. This e-commerce platform is planned to connect to Namaste’s inventory management system and be compliant with Canada’s Access to Cannabis for Medical Purposes (“ACMPR”) regulations.
Under the LOI, Emerald will enter into a medical cannabis Supply Agreement with Namaste’s wholly owned subsidiary, Cannmart Inc. (“Cannmart”), whereby Emerald would supply proprietary strains of medical cannabis to Cannmart, a late-stage ACMPR applicant for a medical cannabis “sales-only” license. Emerald is an ACMPR licensed producer of medical cannabis that cultivates proprietary cannabis strains using proven growing methods backed by cutting-edge research. Cannmart, with its “sales-only” platform, intends to impact the medical cannabis online-retail industry in Canada as it focuses on bringing a larger variety of medical cannabis products from many licensed producers, both domestically and abroad, in an easy-to-use platform for patients.
“Emerald’s goal is to offer a broad selection of cannabis products to adult consumers through various legal channels, including digital and physical stores,” said Avtar Dhillon, Executive Chairman of Emerald. “We believe that combining Namaste’s online marketing tools and expertise, large and growing customer base, and array of cannabis delivery products with our proprietary cannabis strains and product development expertise can build significant incremental sales in legal markets in Canada and internationally.”
Sean Dollinger, President and CEO of Namaste comments: “We see great value in working with Emerald to develop a vertically integrated platform, starting with driving site traffic through to acquiring patients and offering them high quality medical cannabis products. Our goal with Cannmart is to offer the largest selection of medical cannabis products to our patient base in Canada. We look forward to exploring similar opportunities with Emerald internationally. Thanks to Emerald’s management team and Executive Chairman for the amazing communication and collaboration in developing this concept and we look forward to bringing this vision to reality.”
Subject to obtaining necessary stock exchange approvals, on signing of the Proposed Agreement and Supply Agreement Namaste would receive 500,000 warrants of Emerald Health Therapeutics Inc. and Emerald Health Therapeutics Inc. would receive 500,000 warrants of Namaste. All such warrants would be priced in accordance with applicable stock exchange policies.
About Emerald Health Therapeutics
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) operates through Emerald Health Botanicals Inc. ("Botanicals"), a wholly owned subsidiary and Licensed Producer under Canada's Access to Cannabis for Medical Purposes Regulations. Through Botanicals, Emerald is authorized to produce and sell dried medical cannabis flower and medical cannabis oil. It currently operates an indoor facility in Victoria, BC, and is building a 500,000 s.f. greenhouse on 32 acres in Metro Vancouver, with expansion potential to 1 million s.f. to serve the anticipated legal Canadian adult-use cannabis market starting in 2018. Emerald also owns 50% of Pure Sunfarms Inc., a partnership with Village Farms International Inc. that is converting an existing 1.1 million s.f. greenhouse in Delta, BC from growing tomatoes to growing cannabis. Emerald's team is highly experienced in life sciences, product development and large-scale agribusiness. Emerald is part of the Emerald Health group, which is broadly focused on developing pharmaceutical, botanical and nutraceutical products designed to provide wellness and medical benefits by interacting with the human body's endocannabinoid system.
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, 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.
For more information regarding Emerald Health Therapeutics Inc., please visit www.emeraldhealth.ca for more information or contact:
Robert Hill, CFO
(800) 757 3536 Ext. #722
For more information regarding Namaste Technologies Inc.:
President and CEO
Direct: +1 (786) 389 9771
Further information on Namaste and its products can be accessed through the links below:
Forward Looking Information
This press release contains forward-looking information or forward-looking statements within the meaning of applicable securities laws. 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. Such statements include, but are not limited to, execution of definitive agreements, development of the Platform and downstream products, granting of a license to Cannmart, availability of Namaste’s catalog, connection to Namaste’s inventory management system, growth in customer base and products, growth in sales, international development, supply of cannabis to Cannmart, expected timing of any of the above matters; and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Neither Emerald nor Namaste assumes any responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.
Although the parties believe 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 parties 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 failure of the parties to reach agreement on the terms of the definitive agreements; failure of applicable governments to approve legislation legalizing sales of non-therapeutic adult-use cannabis; failure to obtain Health Canada and other regulatory approvals; failure to obtain necessary financing; market demand; production difficulties; reliance on third parties; results of production and sale activities; technological difficulties; timeliness of government approvals and the granting of permits and licenses; changes in prices and costs; actual operating and financial performance of facilities; equipment and processes relative to specifications and expectations and the other risk factors discussed in the disclosure documents of Emerald and Namaste which can be found under their respective profiles on www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.