VANCOUVER, British Columbia, April 25, 2018 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (CSE:N) (FRA:M5BQ) (OTCMKTS:NXTTF) is pleased to announce that it has signed a non-binding letter of intent (“LOI”) with Pineapple Express Delivery Inc. (“Pineapple Express”),
whereby Namaste will invest $1,000,000 to acquire 15% of the share
capital of Pineapple Express and obtain a right of first refusal to
purchase an additional 10% of the share capital for an additional
Pineapple Express currently operates a same-day delivery service for medical cannabis and expects to expand across Canada. Pineapple Express’ management team have a proven track record of launching cross-country same-day delivery services, having sold a previous same-day delivery venture to Just Eat Canada.
The proposed agreement will allow Namaste and Pineapple Express to expand on Pineapple Express’ existing same-day delivery service for medical cannabis platform to provide same-day delivery of medical cannabis across Canada. Namaste intends to assist with the development and marketing of Pineapple Express’ brand and in the optimization of its existing software platform. Namaste will also look to leverage its international exposure and offer Pineapple Express’ fully-integrated software application to international cannabis licensed producers.
The Company along with Pineapple Express will retain exclusive rights to use the Pineapple Express software platform in North America, and Namaste will hold the rights to use the software platform internationally. Pineapple Express has also signed an LOI with Canada’s leading seed-to-sale platform, Ample Organics Inc., to offer same-day delivery to its customers.
Terms of the LOI
will make an initial capital investment of $1,000,000 for 15% of the
share capital of Pineapple Express. The initial capital investment will
be comprised of $850,000 in cash and $150,000 in Namaste common stock,
subject to exchange approval.
- Namaste will receive a
right of first refusal to acquire an additional 10% interest in
Pineapple Express for $1,200,000 for 14 months following the closing
date of the definitive agreement. This payment would be comprised of
$780,000 in cash and $420,000 in Namaste common stock, subject to
- Namaste will reserve for issuance up to 150,000 common share options (the “Options”)
to be issued to Pineapple Express and/or its officers pursuant to
consulting agreements entered into on execution of the definitive
agreement. The Options will vest on a quarterly basis. Namaste will
reserve up to 150,000 Options for issuance each year to Pineapple
Express and/or its officers for so long as they have consulting
agreements with Namaste.
- Namaste and Pineapple Express will jointly hold the exclusive rights to Pineapple Express’ software and technology in North America. Namaste will solely hold the exclusive worldwide rights outside of North America to use Pineapple Express’ software and have a right to sublicense.
Randy Rolph, President and CEO of Pineapple Express: “we are excited by the prospect of partnering with Namaste, as I see this as an excellent fit for both companies. Namaste has built an excellent reputation within the medicinal cannabis industry and has focused on expanding its services so that its customers benefit from a wider array of product offerings. As an extension of these efforts, we believe that our company can ensure their customers get a secure delivery of these products within a very quick turnaround from time of order. Through other businesses, we have successfully offered fast product delivery options for over 10 years across Canada, including same day as well as deliveries in less than one hour. We are familiar with the issues and most importantly the solutions to bring similar levels of service to the medicinal cannabis industry. Customer service has always been our main focus and what has driven the success of our business. We look forward to offering this same level of service to all customers."
Sean Dollinger, President and CEO of Namaste comments: “We are very pleased to have signed this LOI to acquire shares of an amazing company offering a unique service with a proven record of success. As the cannabis market continues to grow, so too has the competitiveness among our industry peers looking to expand their market share. We believe that our ability to offer same-day delivery service for medical cannabis will provide a competitive edge to the Company in terms of offering an incredible buying experience for our patients. Namaste’s mandate from the outset has been focused on providing patients with unparalleled customer service. This transaction reaffirms our team’s ability to identify shortcomings within the cannabis industry, seek viable solutions, and then explore opportunities that aim to further enhance our patient’s experience. We believe this transaction will not only help Namaste attract new patients, but more importantly, it will help us retain patients who see value in the services we provide. We look forward to working with Pineapple Express’ management team and to grow its business and expand internationally. We are very grateful for this opportunity and look forward to cultivating a strong partnership together.”
About Pineapple Express Delivery Inc.
Express’ management team has over 10 years of experience offering
same-day 60-minute delivery services in multiple industries across
Canada, and has successfully integrated with Ample Organics Inc.,
Canada’s leading seed-to-sale medical cannabis software platform.
Pineapple Express offers a personalized experience for its customers and
has established in depth security and delivery protocols to facilitate
same-day delivery of medical cannabis across the country. Pineapple
Express is dedicated to providing patients with a fully integrated,
simple to use, same-day delivery platform which it believes brings great
value to medical patients across the country. For more information
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., a Canadian based late-stage applicant for a medical cannabis sales 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 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. The Canadian Securities Exchange has neither reviewed nor approved the contents of this press release.