Namaste’s funding comes in exchange for 46,729 class B shares of Kief at a cost of $5.35 per share and gives it a 3% stake in Kief, based on an $8.1 million valuation.
Earlier this year, Namaste’s Cannmart subsidiary signed a medical cannabis supply agreement to purchase premium medical cannabis from Kief Cannabis for sale on its online platform. In the wake of Namaste’s new investment, Cannmart will now have the right of first refusal on 35% of the total production of cannabis from Kief.
"We're very pleased to announce this investment into Kief Cannabis. We strongly believe that craft cannabis products will add significant value to our platform through Cannmart and that many of the strains which we plan to introduce have not yet been seen on the market,” said Namaste CEO Sean Dollinger in a statement.
Namaste’s investment in Kief pushes it towards its goal of becoming a top online medical cannabis retailer in Canada. Last September, Namaste received a medical cannabis license from Health Canada, which allows Canadians to purchase medical cannabis from an array of licensed producers through its online platform.
Namaste’s financial backing is also part of a larger effort to foster the craft cannabis market by offering long-term supply agreements that benefit Cannmart’s customers.
Kief Cannabis is a craft cannabis producer that focuses on providing sought-after strains of premium-quality cannabis. It is currently a late-stage applicant to become a licensed producer subject to Canada’s Cannabis act.
Namaste Technologies, meanwhile, operates a global cannabis e-commerce platform with over 30 websites in over 20 countries under various brands. Its products currently include vaporizers, glassware, accessories, CBD products and medical cannabis in the Canadian market.
Namaste shares slipped 3.5% to hit C$1.40 in Monday’s afternoon trading session.
Contact Ellen Kelleher at [email protected]