VANCOUVER, Nov. 19, 2018 /CNW/ – Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) is pleased to announce the launch of its Craft Cannabis Program with its preferred regulatory partners, Cannabis Compliance Inc. (“CCI”). The program is intended to provide support for craft cultivators who will apply for a micro-cultivator or micro-processor license under the Cannabis Act (“Micro Cultivators”). Namaste’s wholly-owned subsidiary, Cannmart Inc. (“Cannmart”) has initiated a program that offers both regulatory and financial support to Micro Cultivators in exchange for a Supply Agreement with the right of first refusal (“ROFR”) on 100% of their production. Cannmart will launch a Craft Cannabis section on its website that will offer patients access to a large variety of premium-quality cannabis products sourced from small-batch producers.
Each Micro Cultivator will be allowed to grow cannabis up to 200 square meters (2152 square feet) of total canopy space. Each Micro Processor will be allowed to process up to 600kg of cannabis from their facility. By securing Supply Agreements with Micro Cultivators, Cannmart will provide its patients with access to many strains which have not yet been available in the regulated market. Cannmart’s Craft Cannabis Program offers significant value for future Micro Cultivators not only by providing regulatory and financial support but also by providing a sales channel directly to consumers, with a healthy margin and national exposure. Craft growers across the country are now allowed to apply for a Micro Cultivator license under the new regulations of the Cannabis Act. As part of the Craft Cannabis Program, Micro Cultivators will have access to;
- Regulatory support through its preferred partners at CCI
- Supply Agreements with a 100% ROFR with prices based on fair-market value
- Reimbursement of up to $100,000 per Micro Cultivator for regulatory compliance costs
- Brand exposure through an e-commerce marketplace and sales across Canada
- Exposure to recreational and international markets
Further to the Company’s May 2018 news release, Namaste acquired 51% of the issued and outstanding shares of 2624078 Ontario Inc., formerly Infinite Labz (“Cannmart Labs”), which is being designed as a purpose-built oil extraction facility directly across the street from Cannmart. Micro Cultivators and Processors who join the Craft Cannabis Program will have access to produce various forms of cannabis oils and extracts for resale through both medical and recreational channels. Each Micro Cultivator and Processor that brings multiple strains to Cannmart’s platform will create product variants ranging from dry flower varieties and quantities to extracts, pre-rolls, cartridges, and edibles (subject to regulatory compliance and regulations from Health Canada), giving Cannmart the ability to expand its product offering rapidly.
The Company is also pleased to note that Cannmart has begun the process of its application for Good Manufacturing Practices (“GMP”) certification, with the intention of facilitating the export of medical cannabis products to the UK and EU in early 2019. Cannmart’s product offering, combined with GMP certification and its existing platform in the UK will offer licensed producers and Micro Cultivators with potential access not only to domestic but also international markets. Namaste is focused on the expansion of medical cannabis sales in international markets where it currently maintains a strong presence, like the UK and Australia. GMP certification is a requirement for export of medical cannabis products to the EU and for the UK.
The Company recently co-hosted a Craft Cannabis conference with Cannabis Compliance Inc. in Nelson, BC and is pleased to report that Cannmart has signed its first Micro Cultivator/Processor Supply Agreement. The Company anticipates signing up to 10 agreements with craft growers in the Kootenay region over the next several weeks. With each Micro Cultivator being allowed to produce up to 600kg of product, 10 agreements would represent the potential for up to 6000kg of premium cannabis for Cannmart per year and a potential revenue stream of up $72,000,000 per year, based on a retail price of $12 per gram for premium product. The Company anticipates securing a minimum of 10 additional Supply Agreements at its upcoming event in Victoria, BC. Cannmart will be heavily focused on securing new Supply Agreements with Micro Cultivators, starting in British Columbia and across Canada over the next several months.
For more information on the Craft Cannabis Program please email Info@NamasteTechnologies.com
Deepak Anand, Vice President of Government Relations and Business Development for CCI comments: We are excited to be working with Cannmart and their craft growers on this important initiative to get them licensed under Health Canada’s newly launched regulations as outlined within the Cannabis Act.”
Sean Dollinger, President, and CEO of Namaste comments: “We’re very excited about this initiative. We hosted an event in Nelson, BC recently which was very successful and we’re expecting more Supply Agreements from some of these craft growers over the next few weeks. Our platform provides great exposure for smaller growers which are not looking to have their products white labeled and sold through wholesale channels. Cannmart’s platform is direct-to-consumer which means that we can offer fair pricing for craft growers, a new sales channel, and by providing financial support for their Micro Cultivator applications, we are securing a guaranteed supply of premium quality craft cannabis for our future.
We will be co-hosting our second Craft Cannabis Conference in Victoria, BC on November 26th, 2018 with Cannmart and CCI and look forward to further success in this exciting program. We would like to invite all craft growers from the region to join and learn about the regulatory process to apply for and receive a Micro Cultivator license and to discuss opportunities with Cannmart.”
About Cannabis Compliance Inc.
Cannabis Compliance Inc. (CCI) offers risk mitigation, due diligence and regulatory compliance for commercial cannabis producers and resellers around the world. We focus in the Global market and provide our clients with trusted and comprehensive solutions. CCI has extensive expertise in regulatory compliance, cultivation/horticulture, security designs/tender, facility designs/build-outs, quality assurance programs, auditing, Good Production Practices (GPP), Good Manufacturing Practices (GMP), Good Agricultural and Collection Practices (GACP), Import & Export, staff recruitment and financial planning. CCI exists to empower the future leaders in the global cannabis industry.
About Namaste Technologies Inc.
Namaste Technologies is Your Everything Cannabis Store™. Namaste operates the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands. Namaste’s product offering through its subsidiaries includes vaporizers, glassware, accessories, CBD products, and medical cannabis in the Canadian market.
Namaste has developed and acquired innovative technology platforms including NamasteMD.com, and in May 2018 the Company acquired a leading e-commerce AI and Machine Learning Company, Findify AB. Findify uses artificial intelligence algorithms to optimize and personalize a consumer’s on-site buying experience. Namaste is focused on leveraging its cutting-edge technology to enhance the user experience throughout its platforms. 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: +1 604-355-6100
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 TSXV has neither reviewed nor approved the contents of this press release.
SOURCE Namaste Technologies Inc.