NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
VANCOUVER, British Columbia, Oct. 30, 2017 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (CSE:N) (FRANKFURT:M5BQ) (OCTMKTS:NXTTF) is pleased to announce the closing of its non-brokered private placement (the “Offering”) for gross proceeds of CAD $3,602,250.
The Offering
Further to the Company's press release dated October 13, 2017, the Company has completed its non-brokered private placement, whereby a total of 14,409,000 units of the Company (the “Units”) have been issued and sold, at a price per Unit of $0.25, for total gross proceeds of $3,602,250. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one Share at a price of $0.35 for a period of 24 months following the closing date.
In the event that the closing price of the Company's Shares on the Canadian Securities Exchange is greater than $0.70 per Share for a period of 10 consecutive trading days at any time after the closing of the Offering, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
The securities issued pursuant to the Offering are subject to a four month plus one day hold period in Canada expiring on March 1, 2018.
Namaste intends to use the net proceeds from the Offering to finance construction at the Company’s wholly-owned subsidiary, Cannmart Inc. (“CannMart”), to purchase medical cannabis inventory once CannMart receives its distribution license from Health Canada and for strategic corporate purposes.
Construction of a state-of-the-art facility is estimated to take between six to eight weeks for completion. CannMart is a late stage applicant for a license to distribute medical cannabis under the Canadian Access to Cannabis for Medical Purposes Regulations (“ACMPR”). Namaste has developed a telemedicine application called Namaste MD which is aimed at providing a fully integrated solution for patients to consult with doctors and to facilitate a smooth process from consultation to prescription. Namaste MD will direct patients to an online marketplace for medical cannabis. Namaste plans on leveraging its existing database of consumers along with e-commerce expertise to gain the majority market share of online medical cannabis sales in Canada.
Management Commentary
Mr. Sean Dollinger, President and CEO of Namaste, comments: “We are very happy to have closed this Offering and to have done so at a premium to the trading price. We believe that the success and price of the Offering speak to the level of confidence of our investors in Namaste. The funds raised from the Offering give us the flexibility to complete CannMart’s build-out with cash reserved for inventory purchasing and the opportunity to explore growth in the medical and recreational cannabis market. We would like to thank our investors and participants in the private placement for their support. We are very excited for the future and are looking forward to completing construction at our CannMart facility as soon as possible.”
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, US, 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.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
On behalf of the Board of Directors
“Sean Dollinger”
Chief Executive Officer
Direct: +1 (786) 389 9771
Email: info@namastevapes.com
Further information on the Company and its products can be accessed through the links below:
www.namastetechnologies.com
www.namastevaporizers.com
www.namastevaporizers.co.uk
www.everyonedoesit.com
www.everyonedoesit.co.uk
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.