TORONTO, Oct. 18, 2019
/CNW/ - Namaste Technologies Inc. ("Namaste" or the
"Company") (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF), a
leading online platform for cannabis products, accessories, and
responsible education, today announced that it has entered
into a secured convertible loan agreement (the "Loan
Agreement") with Choklat Inc. ("Choklat"), a private
chocolate manufacturer in Alberta
to advance $300,000 to Choklat.
"We're investing in Choklat to ensure they're able to maximize
the pending market opportunity for edibles," said Meni Morim, CEO of Namaste Technologies Inc.
As consideration for the advance of funds, Namaste is entitled
to interest at a rate of 12% per annum on all amounts outstanding
under the loan. The principal and all accrued interest thereon is
repayable in full by Choklat at any time prior to December 31, 2020 (the "Maturity Date").
In the event that Choklat fails to repay any principal or interest
outstanding under the Loan Agreement on or prior to the Maturity
Date, all such outstanding amounts will automatically convert into
common shares in the capital of Choklat (each, a "Choklat
Share") at a deemed value of $0.152 per Choklat Share. In connection with the
Loan Agreement, Namaste and Choklat entered into a general security
agreement, pursuant to which Choklat granted to Namaste a security
interest in all present and after acquired property of Choklat for
a period of five years. Namaste currently holds a 49% interest in
the issued and outstanding share capital of Choklat.
Choklat is a premium chocolate manufacturer with existing sales
through its online eCommerce site and through a network of
distributors across Canada.
Choklat has entered into a supply relationship with Sobeys and
already has product in 25 stores in Alberta with a goal to roll out in
Western Canada and beyond in the
coming months.
Choklat completed and submitted its evidence package to Health
Canada in July 2019. Choklat has seen
significant expansion while preparing for the legalization of
edibles, with non-infused products now available in over 150 retail
outlets across Canada, including
an increasing number of Safeway and Sobeys's stores in Western Canada. Choklat is making every effort
to ensure that it can smoothly transition its business activities
to a new facility nearby, transforming its current space into a
state-of-the-art edibles processing facility.
About Choklat
Choklat Inc. is currently the only bean
to bar chocolate maker in Alberta
and the largest premium craft chocolate maker in Canada.
Where other chocolate companies simply purchase bulk chocolate to
make their confections, Choklat imports some of the finest and
rarest cocoa beans in the world then roasts and refines them
in-house to make the company's own proprietary chocolate which is
used in all of their confections. Since opening for the first
time in 2008, Choklat has established itself throughout
Western Canada as one of the most
prominent luxury brands on the market today. Choklat's
products are now in over 70 different retailers throughout
Western Canada. Choklat has also
just expanded regionally into Sobeys and Safeway stores – making it
into more than 25 stores in the past two weeks alone. For more
information, visit:www.Choklat.com
About Namaste Technologies Inc.
With headquarters in
Toronto, ON, and offices in both
B.C. and around the globe, Namaste Technologies is the world's
leading online platform for cannabis products, accessories, and
responsible education. The company's 'everything cannabis store',
CannMart.com, provides customers with a diverse selection of
hand-picked products from a multitude of federally-licensed
cultivators, all on one convenient site. Namaste's global
technology and continuous innovation address local needs in a
burgeoning cannabis industry requiring smart solutions. For further
information about Namaste, please visit Namastetechnologies.com
Information on the Company and its many products can be accessed
through the links below:
NamasteTechnologies.com
NamasteMD.com
Cannmart.com
NamasteVapes.ca
Everyonedoesit.ca
FORWARD-LOOKING INFORMATION - This news release contains
"forward-looking information" within the meaning of applicable
securities laws. All statements contained herein that are not
historical in nature contain forward-looking information.
Forward-looking information can be identified by words or phrases
such as "may", "expect", "likely", "should", "would", "plan",
"anticipate", "intend", "potential", "proposed", "estimate",
"believe" or the negative of these terms, or other similar words,
expressions and grammatical variations thereof, or statements that
certain events or conditions "may" or "will" happen. The
forward-looking information contained in this press release,
includes, but is not limited to, statements related to the ability
of Namaste to offer a wide range of cannabis products; and the
potential conversion of any outstanding principal or interest under
the Loan Agreement into Choklat Shares. The forward-looking
information contained herein is made as of the date of this press
release and is based on assumptions management believed to be
reasonable at the time such statements were made, including
management's perceptions of Namaste's standing in the online
marketplace for cannabis products, Choklat's ability to
maximize the pending market opportunity for edibles, Choklat's
ability to repay the advanced funds, Namaste's ability to enforce
its rights under the general security agreement, if necessary,
historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances. While we consider these
assumptions to be reasonable based on information currently
available to management, there is no assurance that such
expectations will prove to be correct. By their nature,
forward-looking information is subject to inherent risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. A variety of factors,
including known and unknown risks, many of which are beyond our
control, could cause actual results to differ materially from the
forward-looking information in this press release. Such factors
include, without limitation: risks relating to the Company's
ability to execute its business strategy and the benefits
realizable therefrom, risks specifically related to the Company's
international operations, and risks relating to the market price of
the Common Shares. Additional risk factors can also be found in the
Company's current MD&A and annual information form, both of
which have been filed under the Company's SEDAR profile at
www.sedar.com. Readers are cautioned not to put undue reliance on
forward-looking information. The Company undertakes no obligation
to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by applicable law. Forward-looking statements contained in
this news release are expressly qualified by this cautionary
statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release or has in any way approved or disapproved
of the contents of this press release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/namastes-cannmart-enters-into-loan-agreement-with-choklat-inc-300941543.html
SOURCE Namaste Technologies Inc.