TORONTO, Oct. 18, 2019 /PRNewswire/ - 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.
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:
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.
SOURCE Namaste Technologies Inc.