Namaste Technologies Inc. (TSXV:N) (OTCMKTS:NXTTF) announced a new share purchase agreement with Pineapple Express Delivery Inc. on Monday. Per the agreement, Namaste will officially own 49 percent of the common shares of Pineapple Express. Namaste initially announced the first subscription agreement with Pineapple Express in June. However, the new agreement, announced December 17, permits the company to acquire an additional 10 percent of the shares within the next fourteen months if they wish to do so.
Even though they acquired nearly half of the shares in Pineapple Express, Namaste will not control the finances or operations of the company. The Pineapple Express management team will retain control of the company while Namaste CEO Sean Dollinger will be appointed to the company’s board of directors.
“We believe strategic investments in technology and service companies like Pineapple Express will drive innovation and provide long-term value for the Company,” Dollinger added in yesterday’s announcement. “I'm also personally looking forward to joining Pineapple Express' board of directors and in offering value to their team.”
According to a statement, Namaste’s business focus remains on developing a leading technology platform for the cannabis industry. The company already operates a considerable cannabis e-commerce platform with over thirty websites to their name, and they started utilizing Pineapple Express’ same-day delivery platform through their subsidiary CannMart earlier this year.
Namaste announces binding agreement to acquire an additional 34% equity in Pineapple Express delivery for 49% total ownership. Read more now https://t.co/cQdVsiLwuP#PineappleExpress #NextDayDelivery #CannabisDelivery #MedicalCannabis #TorontoCannabisCommunity pic.twitter.com/vOm11N85KX
— Namaste Technologies (@Namaste_Tech) December 17, 2018
Namaste launches Namaste Cafe
Namaste also announced the launch of a new retail concept for cannabis this month. The appropriately-named Namaste Cafe is a new element in Namaste’s plans for retail expansion. They will be education-focused, teaching consumers responsible ways to consume cannabis, while offering coffee, vaporizers, and the H.E.A.L. brand of edible products.
H.E.A.L., which stands for Health Eating and Living, will be launched alongside the new cafe, with online content that includes educational videos as well as cooking videos with recipes and ingredient lists for consumers to follow easily. According to the press release, H.E.A.L. is enlisting their CEO Pete Evans to host a few videos. Not all of H.E.A.L.’s products will be infused with cannabis, but Namaste does plan to release cannabis edibles and concentrates through H.E.A.L. per Canada’s upcoming regulations regarding that side of the industry.
“We are looking forward to entering this exciting space with an industry leader like Namaste; we look forward to providing value not only from an educational perspective but also in offering a high-quality product that we can all be proud of,” Pete Evans said in the press release. “Having spent many years in the food industry and understanding the value of Cannabis for medical purposes, we are very much looking forward to launching this exciting project.”
The content Namaste is creating with their new brand, and their new cafe will all be a piece of their elaborate online concept. On top of carrying all of Namaste’s products, Namaste Cafe’s will also provide interactive learning opportunities for patrons through their online portals and seminars. The first store is projected to open early next year, and investors should be on the lookout for the location of the flagship store. The flagship announcement will be made within the next sixty days, per the company’s December 5 press release.