Namaste Technologies takes 49% stake in Pineapple Express Delivery
Namaste Technologies Inc (CVE:N) (OTCMKTS:NXTTF) is acquiring a 49% stake in Pineapple Express Delivery Inc, a company that offers a same-day delivery service platform for medical and recreational cannabis to Canadian licensed producers.
Under the terms of the deal, the Vancouver-based cannabis company will take shares in Pineapple Express Delivery and an affiliated entity, which represents an additional 34% equity stake in exchange for shares of Namaste having an approximate value of $3.06 million.READ: Namaste unit may buy up to C$100M of medical cannabis from Agraflora Organics annually
After the deal is completed, Namaste, which earlier took a 15% stake in Pineapple, will own just under half of the shares of Pineapple Express.
Namaste’s wholly-owned subsidiary Cannmart Inc has already recently launched same-day delivery services to its patients via Pineapple Express.
“We are now offering same-day delivery services in Toronto through Pineapple Express and are looking forward to their expansion throughout Canada,” said Namaste CEO Sean Dollinger in a statement. “We believe strategic investments in technology and service companies like Pineapple Express will drive innovation and provide long-term value for the company.”READ: Namaste Technologies to open cannabis cafés and launch H.E.A.L. health foods
After the investment, Pineapple Express’s management team will keep hold of the financial and operational control of its business. And Namaste CEO Sean Dollinger will be appointed to Pineapple’s board of directors.
Namaste operates a global cannabis e-commerce platform and boasts over 30 websites in over 20 countries under various brands. Namaste’s product offerings via its subsidiaries include vaporizers, glassware, CBD products and medical cannabis in the Canadian market through CannMart.com.
Pineapple Express, meanwhile, provides medical marijuana patients with a fully integrated, same-day delivery platform.
Namaste shares dipped 0.8% to C$1.22 in Canadian trading on Monday morning.
Contact Ellen Kelleher at email@example.com