Namaste Announces Binding Agreement to Acquire an Additional 34% Equity in Pineapple Express Delivery for 49% Total Ownership
Namaste Technologies Inc.(TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) is pleased to announce that the Company has entered into a share purchase agreement to acquire common shares in Pineapple Express Delivery Inc. and an affiliated entity, representing an additional 34% equity in exchange for such number of common shares of Namaste having an aggregate value of approximately $3.06 Million. Upon completion of the Transaction, Namaste will own 49% of the outstanding common shares of Pineapple Express.
Namaste’s Agreement with Pineapple Express supports the Company’s strategy to invest in innovative companies which bring value to the Company and to the broader market. Namaste believes that same-day delivery for medical and recreational cannabis through Pineapple Express’ platform will provide patients and consumers with added-value and the Company looks forward to the expansion of the platform across Canada.
As reported in the Company’s June 13, 2018 news release, Namaste entered into a subscription agreement to acquire 15% of the issued and outstanding shares of Pineapple Express (the “Subscription Agreement”).
Under the terms of the Subscription Agreement, Namaste has the right to acquire an additional 10% of the common shares of Pineapple Express for a period of 14 months (the “Option”).
Pineapple Express offers a same-day delivery service platform for medical and recreational cannabis to licensed producers across Canada.
Highlights of the Transaction:
- Namaste will issue shares in accordance with the Agreement, based on the closing price on the TSX Venture Exchange on Friday December 14th, 2018.
- Pineapple Express management team retain financial and operational control of the business.
- Namaste’s CEO Sean Dollinger will be appointed to Pineapple Express’ board of directors.
- The Transaction is subject to the receipt of certain stock exchange approvals and the satisfaction of other conditions customary in transactions of this nature.
Pineapple Express is a same-day delivery platform for medical cannabis and has launched services in Manitoba and Ontario, with plans to expand into other provinces. Namaste’s wholly-owned subsidiary, Cannmart Inc. (“Cannmart”) has also recently launched same-day delivery services to its patients through Pineapple Express. The Company has been pleased with the initial roll-out of Pineapple Express delivery services and its management team who will continue to operate as an independent entity from Namaste and in offering its services to Licensed Producers across Canada.
Namaste remains focused on developing and acquiring leading technology platforms that bring value to the cannabis industry. This Agreement represents a significant milestone for the Company in diversifying its investments in innovative companies, while at the same time having the ability to offer valuable services for its medical patients. Namaste’s goal is to evolve the current landscape for online retail cannabis products by improving the user experience. The Company will continue to seek opportunities to develop and invest in innovative technology platforms and in expanding its offering in Canada and internationally.
Randy Rolph, President and CEO of Pineapple Express comments: “We are extremely excited to be deepening the relationship between Pineapple Express and Namaste. Our management team and I look forward to having Namaste support our vision for the future development of the company. We’re confident that our same-day delivery platform will offer value to both medical patients and recreational consumers across Canada.”
Sean Dollinger, President, and CEO of Namaste comments: “We’re pleased to announce adding to our position in Pineapple Express, an innovative company with a strong management team focused on providing exceptional service. We are now offering same-day delivery services in Toronto through Pineapple Express and are looking forward to their expansion throughout Canada. We believe strategic investments in technology and service companies like Pineapple Express will drive innovation and provide long-term value for the Company. I’m also personally looking forward to joining Pineapple Express’ board of directors and in offering value to their team.”
About Pineapple Express Delivery Inc.
Pineapple 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 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 visit: www.pineappleexpressdelivery.ca
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 thorough its licensed affiliate, CannMart.com.
Namaste has developed and acquired innovative technology platforms including NamasteMD.com, a telemedicine application which facilitates online consultations for medical cannabis, 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 through 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.
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