Namaste Tech To Acquire Remaining Portion Of CannMart Labs For $4.0 Million
Namaste Technologies (TSXV: N) announced this morning that it has entered into an arrangement to acquire the remaining 49% interest in CannMart Labs. The company is said to be in the final stages of acquiring its processing license from Health Canada.
The acquisition will enable Namaste to be able to make its own in-house branded cannabis 2.0 products, which seems to be the appeal to the transaction for the company, along with acquiring the final ownership portion of the company. The products will then be sold through CannMart Inc, a sister company to the subsidiary.
The share purchase arrangement will see Namaste pay a total figure of $4.0 million for the remaining portion of Namaste Labs, despite the company having financed the construction of the facility that the company will soon operate out of. The first tranche of payment will be $1,608,500, which is to be paid on the closing date of the transaction. The initial payment will be paid in common shares, based on the seven day volume weighted average price of the equity.
The remaining figure of $2,425,500 will then be paid in equal tranches to the vendors over nine fiscal quarters, beginning the quarter ending February 28, 2021. Shares will again be issued at the seven day volume weighted average price for these equal payments again.
Earnout payments are also in play based on revenue targets, with earnouts applicable for the next nine fiscal quarters. The earn out is capped at a maximum of $1.94 million in aggregate over the nine quarters, to be paid in common shares.
Payment is eligible to be made in cash at a 5% discount if the company so wishes.
Namaste Technologies last traded at $0.23 on the TSX Venture.
Information for this briefing was found via Sedar and Namaste Technologies. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.