Emerald Health Therapeutics and Namaste Technologies Announce Letter of Intent for International Partnership and Supply Agree...
January 30 2018 - 6:30AM
Emerald Health Therapeutics Inc. (“Emerald”) (TSXV:EMH)
(OTCQX:EMHTF) and Namaste Technologies Inc. (“Namaste”) (CSE:N)
(FRANKFURT:M5BQ) (OTCMKTS:NXTTF) have signed a Letter of Intent
(“LOI”) whereby Namaste and Emerald propose to enter into a
definitive agreement (the “Proposed Agreement”) to collaborate on
strategic business opportunities worldwide and develop a
fully-integrated e-commerce platform (the “Platform”) to serve as a
retail channel for Emerald’s patients. Under the terms of the
Proposed Agreement, the companies would leverage Namaste’s existing
consumer databases, site traffic and e-commerce technology for
marketing purposes along with Emerald’s pharmaceutical and biotech
expertise to develop medical cannabis downstream products tailored
to specific markets and patients.
The e-commerce platform will be developed using
Namaste’s technology, including machine learning algorithms and
advanced on-site optimization techniques, and is planned to be
available on desktop and mobile devices. Through the Platform
Namaste would make available its full product catalog of over 1000+
cannabis delivery devices to Emerald for sale to its patients. This
e-commerce platform is planned to connect to Namaste’s inventory
management system and be compliant with Canada’s Access to Cannabis
for Medical Purposes (“ACMPR”) regulations.
Under the LOI, Emerald will enter into a medical
cannabis Supply Agreement with Namaste’s wholly owned subsidiary,
Cannmart Inc. (“Cannmart”), whereby Emerald would supply
proprietary strains of medical cannabis to Cannmart, a late-stage
ACMPR applicant for a medical cannabis “sales-only” license.
Emerald is an ACMPR licensed producer of medical cannabis that
cultivates proprietary cannabis strains using proven growing
methods backed by cutting-edge research. Cannmart, with its
“sales-only” platform, intends to impact the medical cannabis
online-retail industry in Canada as it focuses on bringing a larger
variety of medical cannabis products from many licensed producers,
both domestically and abroad, in an easy-to-use platform for
patients.
“Emerald’s goal is to offer a broad selection of
cannabis products to adult consumers through various legal
channels, including digital and physical stores,” said Avtar
Dhillon, Executive Chairman of Emerald. “We believe that combining
Namaste’s online marketing tools and expertise, large and growing
customer base, and array of cannabis delivery products with our
proprietary cannabis strains and product development expertise can
build significant incremental sales in legal markets in Canada and
internationally.”
Sean Dollinger, President and CEO of Namaste
comments: “We see great value in working with Emerald to develop a
vertically integrated platform, starting with driving site traffic
through to acquiring patients and offering them high quality
medical cannabis products. Our goal with Cannmart is to offer the
largest selection of medical cannabis products to our patient base
in Canada. We look forward to exploring similar opportunities with
Emerald internationally. Thanks to Emerald’s management team and
Executive Chairman for the amazing communication and collaboration
in developing this concept and we look forward to bringing this
vision to reality.”
Subject to obtaining necessary stock exchange
approvals, on signing of the Proposed Agreement and Supply
Agreement Namaste would receive 500,000 warrants of Emerald Health
Therapeutics Inc. and Emerald Health Therapeutics Inc. would
receive 500,000 warrants of Namaste. All such warrants would be
priced in accordance with applicable stock exchange policies.
About Emerald Health
TherapeuticsEmerald Health Therapeutics, Inc. (TSXV:EMH)
(OTCQX:EMHTF) operates through Emerald Health Botanicals Inc.
("Botanicals"), a wholly owned subsidiary and Licensed Producer
under Canada's Access to Cannabis for Medical Purposes Regulations.
Through Botanicals, Emerald is authorized to produce and sell dried
medical cannabis flower and medical cannabis oil. It currently
operates an indoor facility in Victoria, BC, and is building a
500,000 s.f. greenhouse on 32 acres in Metro Vancouver, with
expansion potential to 1 million s.f. to serve the anticipated
legal Canadian adult-use cannabis market starting in 2018. Emerald
also owns 50% of Pure Sunfarms Inc., a partnership with Village
Farms International Inc. that is converting an existing 1.1 million
s.f. greenhouse in Delta, BC from growing tomatoes to growing
cannabis. Emerald's team is highly experienced in life sciences,
product development and large-scale agribusiness. Emerald is part
of the Emerald Health group, which is broadly focused on
developing pharmaceutical, botanical and nutraceutical products
designed to provide wellness and medical benefits by interacting
with the human body's endocannabinoid system.
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, 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.
For more information regarding Emerald Health
Therapeutics Inc., please visit www.emeraldhealth.ca for more
information or contact:
Robert Hill, CFO(800) 757 3536 Ext.
#722invest@emeraldhealth.ca
For more information regarding Namaste Technologies Inc.:
“Sean Dollinger” President and CEODirect: +1 (786) 389
9771Email: info@namastetechnologies.com
Further information on Namaste and its products
can be accessed through the links below:
www.namastetechnologies.com www.namastevaporizers.co.uk
www.everyonedoesit.co.ukwww.australianvaporizers.com.au
Forward Looking Information
This press release contains forward-looking
information or forward-looking statements within the meaning of
applicable securities laws. 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. Such
statements include, but are not limited to, execution of definitive
agreements, development of the Platform and downstream products,
granting of a license to Cannmart, availability of Namaste’s
catalog, connection to Namaste’s inventory management system,
growth in customer base and products, growth in sales,
international development, supply of cannabis to Cannmart, expected
timing of any of the above matters; and other information that is
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Neither Emerald nor
Namaste assumes any responsibility to update or revise
forward-looking information to reflect new events or circumstances
unless required by law.
Although the parties believe 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 parties 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 failure
of the parties to reach agreement on the terms of the definitive
agreements; failure of applicable governments to approve
legislation legalizing sales of non-therapeutic adult-use cannabis;
failure to obtain Health Canada and other regulatory approvals;
failure to obtain necessary financing; market demand; production
difficulties; reliance on third parties; results of production and
sale activities; technological difficulties; timeliness of
government approvals and the granting of permits and licenses;
changes in prices and costs; actual operating and financial
performance of facilities; equipment and processes relative to
specifications and expectations and the other risk factors
discussed in the disclosure documents of Emerald and Namaste which
can be found under their respective profiles on www.sedar.com.
Neither 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.