VANCOUVER, British Columbia, May 02, 2018 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV:N) (FRA:M5BQ) (OTC:NXTTF) is pleased to announce that on May 1, 2018 the Company executed a definitive agreement to acquire (the “Acquisition”) all of the issued and outstanding shares of Findify AB (a Swedish corporation, “Findify”), for a purchase price of US $12,000,000 in a combination of cash and common shares of the Company. Findify is a global leader in A.I. powered e-commerce personalization, delivering solutions such as personalized search, recommendations, and advanced data analytics. Among its customers are Nine West, PLV Shoes, and Rocketdog.
Management expects the integration of Findify’s proprietary technology to increase monetization and propel revenue growth in both cannabis and hardware sales. In addition to anticipated growth in Namaste’s core business, the Company will allocate resources to expand on Findify’s existing platform and expects this to result in increased EBITDA by the end of 2019. Namaste also anticipates accelerating patient growth through its wholly owned subsidiary and Canada’s first fully-compliant online patient portal, NamasteMD Inc. (“NamasteMD” or “NamasteMD.com”). By implementing Findify’s technology in applications of patient acquisition, conversion rates, order value and customer retention, the Company expects to reach 50,000 medical cannabis patients by the end of 2018 and up to 100,000 by the end of 2019.
Findify’s platform which is used by leading e-commerce websites, including Namaste, uses proprietary real-time machine learning algorithms to build unique user profiles, and deliver a personalized experience for each user. The platform continuously learns from user behavior to automatically improve search results, recommendations, and product landing pages, displaying the most relevant products at any given time. It identifies product trends and, in combination with an analysis of unique customer behavior, ranks products in a way to optimize revenue, conversion rates and average order value. Based on the Bank of Canada’s exchange rate on May 1, 2018, Findify’s annual 2017 revenue was $503,170 and its first quarter 2018 revenue was $198,211.
Key terms of the Acquisition:
Namaste will acquire all issued and outstanding shares of Findify in exchange for:
US $2,000,000 in cash to be paid upon the closing date of the transaction.
US $10,000,000 to be paid in common shares of Namaste at a mutually agreed price of C$1.80 per common share.
Key designated employees of Findify will be remaining with the company after the completion of the acquisition.
The acquisition of Findify brings an incredible amount of value to the Company in applications related to the online retail of medical cannabis. Namaste recognizes this as a unique opportunity to offer medical cannabis patients an even more personalized experience. The acquisition of Findify will reinforce Namaste’s goal of becoming the global leader in cannabis technology solutions by further expanding its innovative e-commerce platform and enhancing the user experience for cannabis patients globally.
In addition, the acquisition of Findify creates a new revenue stream for the Company in the field of artificial intelligence and data analytics. Namaste will continue to operate and expand on Findify’s existing platform and client portfolio. Namaste anticipates rapid expansion of its technology licensing business.
Meni Morim, Founder and CEO of Findify comments: “The Findify team is very excited to join the Namaste family, and take part in revolutionizing the online cannabis domain. The team brings years of experience, having built a unique machine learning platform that leverages user behavior, to deliver a personalized e-commerce experience across touchpoints, with a focus on search & discovery. We believe that Namaste’s strong positioning in the market will enable us to take advantage of this technology in the best possible way, and deliver immediate value to customers and shareholders - by buildings the world’s first fully integrated A.I. platform for cannabis.
Having built a relationship with Namaste as a client over the past two years, we found that we share many of the same core values, work ethic, and passion for building products that people love. We’re confident that the merging of our teams will enable us to continue innovating in this fast-paced, growing industry.”
Laurens Feenstra, Director of Namaste, an A.I. expert, and Product Manager for Google Waymo comments: “I am super excited for the talented team of Findify to join Namaste! Their leading machine learning models have already made Namaste much better at recommending the right products to our customers. And, even more importantly, we are thrilled to apply their deep A.I. expertise to cannabis. There are approximately 800 identified strains of cannabis each with hundreds of active ingredients, meaning each plant works differently for each person. Understanding which plant works for whom will be key in helping cannabis benefit everyone.”
Sean Dollinger, President and CEO of Namaste comments: “We’re very pleased to announce the acquisition of Findify. This is a very exciting opportunity for Namaste to forge new ground in the cannabis industry by introducing what we believe to be the most innovative technology for on-site personalization. Moving forward we believe global cannabis patients will demand a more customized online experience, as products and services in the cannabis industry continue to grow exponentially. Having worked with Findify as a client, we have witnessed excellent results through the implementation of their technology and believe strongly in the quality of their management team. Based on the success we have seen in the utilization of similar technology in other industries, we are extremely excited and optimistic to become the first company to introduce this incredible technology into the cannabis market and further enhance the online experience for cannabis patients.
Our vision for the Company in becoming a global leader in medical cannabis technology is evident from the addition of our new board members coming from Google and SpaceX, industry leaders in the areas of machine learning and A.I. that chose to join Namaste’s team. Furthermore, this acquisition represents a major milestone for Namaste in solidifying itself as one of the most innovative technology companies in the cannabis industry.”
About Findify AB
Findify is a leader in e-commerce machine learning applications, with over 1200 customers in more than 60 countries around the world. Findify has developed a unique machine learning core, that leverages user behaviour, to personalize online experiences in real-time. Findify’s machine learning technology has been proven to deliver up to 27% uplift in conversion rate, and up to 30% uplift in revenue per user.
Findify is an official Shopify Plus Technology Partner, recognized as a “Best-In-Class Solution” for modern, rapidly growing e-Commerce businesses.
About Namaste Technologies Inc.
Namaste Technologies is a global leader in the sale of medical cannabis consumption devices. Namaste has nine offices with multiple distribution centers around the globe and operates over 30 websites under various brands. Namaste has developed innovative technology platforms including NamasteMD.com, Canada's first ACMPR compliant telemedicine application. The company is focused on patient acquisition through NamasteMD and intends on building Canada's largest database of medical cannabis patients. The company's subsidiary, CannMart Inc. is an ACMPR Licensed Producer with a "sales-only" license, whereby the company will offer a large variety of medical cannabis sourced from domestic and international producers. Namaste will continue to develop and acquire innovative technologies which will provide value to the Company and to its shareholders as well as to the broader cannabis market.
On behalf of the Board of Directors
Chief Executive Officer
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 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 harbour provisions of the Private Securities Litigation Reform Act of 1995. Neither the TSX Venture Exchange nor its market regulator has reviewed or approved the contents of this press release.