VANCOUVER, British Columbia, March 22, 2018 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (CSE:N)(FRANKFURT:M5BQ)(OTC:NXTTF) is pleased to announce that it has signed a non-binding Terms Sheet (the “Terms Sheet”) with PharmaCann Pty Ltd. (“PharmaCann”), whereby Namaste will participate in an investment to purchase a 10% equity position in PharmaCann. PharmaCann currently operates with existing licenses to import, export and wholesale medical cannabis issued by the Australian Government Department of Health. Namaste’s investment in PharmaCann will be used by PharmaCann to proceed with its application to further secure a cultivation license. The Australian market represents a major component of Namaste’s current revenue, which is derived in hardware sales, and remains a primary focus of Namaste's strategic initiatives as it looks to target the Australian medical cannabis industry. Namaste believes PharmaCann’s import, export and wholesale licenses bring immediate value to the Company and believes that PharmaCann has the ability to obtain a cultivation license which will further enhance Namaste's ability to penetrate global markets. In addition to Namaste’s strategic investment in PharmaCann, the Terms Sheet outlines additional business ventures between both parties as outlined below.
Namaste will provide a cash investment for 10% equity in PharmaCann.
Namaste will purchase 250kg annually of medical cannabis for export to Canada under the Company’s wholly owned subsidiary Cannmart Inc. (“Cannmart”) for the next three years, subject to approval by Health Canada.
Namaste will assist PharmaCann with implementation of a global distribution strategy.
Namaste will provide non-exclusive access to its database of Australian consumers.
PharmaCann will leverage its import, export and wholesale licenses to support Namaste in international markets.
PharmaCann will grant up to 10% of its useable space to develop genetic strains of medical cannabis with Namaste.
PharmaCann will perform clinical trials with the use of Namaste’s hardware and client-base, in accordance with Australian state and federal laws.
Closing of the proposed agreement will be contingent upon negotiating and execution of definitive documentation and approval of the terms of the agreement by each party’s respective directors.
Namaste remains committed to focusing on opportunities and collaborations with PharmaCann in the Australian market, as it represents an important part of the Company’s growth strategy moving forward. As the Canadian market progresses closer towards full legalization, Namaste is of the opinion that additional markets, such as Australia, will provide Namaste with a more diverse market presence by allowing the Company to continue leveraging its global database of cannabis users. This strategy represents an opportunity for Namaste to expand its global ecommerce platform into other progressive markets, as it looks to replicate the success it has achieved in the Canadian market.
Victor Caprio, Managing Director and CEO of PharmaCann comments: “PharmaCann is excited to be working with Namaste to strengthen our respective positions in the Australian and International Markets. With Namaste’s strategic investment in PharmaCann, we strongly believe that our current foothold in the Australian Market will be amplified exponentially and will provide us with further opportunities to increase our market offerings, whilst allowing for further growth in this exciting and ever-evolving industry. Additionally, our teams look forward to continuing our close working relationship together to ensure that our shared values and overall objectives are maintained, both now and into the future.”
Sean Dollinger, President and CEO of Namaste comments: “We are very pleased to announce this non-binding Terms Sheet with PharmaCann. This is something we have been working on for several months and having received our Canadian ACMPR license, we plan on executing our strategy to launch a similar platform in regional markets where Namaste maintains large market presence. There are a multitude of synergistic relationships with PharmaCann not only from cultivation but in leveraging PharmaCann’s import, export and wholesale licenses to expand on our global operations. We are very excited at the incredible opportunities that exist globally, as other countries look to capitalize on the rapidly growing cannabis industry.”
PharmaCann Pty Ltd is an Australian Company that was formed by a group of entrepreneurs, whom shared the same belief that medicinal cannabis can be a beneficial and viable treatment option for patients with multiple and varying conditions throughout Australia and the world. PharmaCann formed its Biotechnology and Nutraceutical Company with a team of public health and medical experts dedicated and committed to supplying an alternative to traditional medications with the use of cannabinoids. Our Medical and Allied Health Network works diligently to ensure that Patients have adequate access to alternative treatment options, whilst working closely with our State and Federal Regulatory Agencies to ensure that adequate access is maintained.
About Namaste Technologies Inc.
Namaste is the largest online retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through 24 e-commerce sites in 20 countries and with 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., 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 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.
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.