Namaste Technologies Inc (CVE:N) (OTCMKTS: NXTTF), the cannabis e-commerce company, is set to press ahead with its plan to lend C$300,000 to Choklat, an Alberta-based craft chocolate manufacturer, in the wake of news that the TSX Venture Exchange has signed off on the agreement.
The loan, which matures at the end of December 2020, bears interest at 12% per year and if Choklat fails to repay any principal or interest, it will automatically convert into common shares of Choklat at a deemed value of $0.152 each.
Namaste now holds a 49% in Choklat, the largest premium craft chocolate maker in Canada.
"We're investing in Choklat to ensure they're able to maximize the pending market opportunity for edibles," Meni Morim, chief executive at Namaste Technologies Inc, recently told investors.
Choklat has existing sales through its online eCommerce site and through a network of distributors across Canada. It has struck a supply deal with Sobeys and already has products in 25 stores in Alberta and aims to roll them out in Western Canada and beyond in the coming months.
Namaste said Choklat had 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.