Namaste Technologies Inc (CVE:N) (OTCMKTS:NXTTF) announced Monday its subsidiary CannMart Inc has been granted an exclusive license by IGNITE International Brands Ltd (CSE:BILZ) (OTCQX: BILZF) to utilize certain brand trademarks on cannabis-based products for sale in Canada.
In addition, CannMart has received approval from Alberta Gaming, Liquor & Cannabis (AGLC) and the Ontario Cannabis Retail Corporation operating as the Ontario Cannabis Store (OCS) to begin offering Cannabis 2.0 products.
Namaste said CannMart's first offering will be a variety of vape cartridges.
"Our agreement to become the exclusive distributor of IGNITE products in Canada is an important milestone for the company and positively reflects on our value proposition," said Namaste CEO Meni Morim in a statement.
"CannMart continues to demonstrate its ability to grow its sales distribution channels in the Canadian market and this is attracting the attention of well-established brands like IGNITE. We place a high value on our relationships with these brands as it is our belief that brand recognition will be a major driver of growth as the legal industry matures and transitions to consumer-packaged goods."
Morim added: "The listing of Cannabis 2.0 products for the provinces of Ontario and Alberta is an important achievement and opens meaningful additional revenue channels. The Cannabis 2.0 market is a large addressable market and the approval to list our products in Alberta and Ontario, with more than 450 and 90 cannabis stores respectively, represents a substantial increase in the addressable market for CannMart."
Lester Lee, president of IGNITE, said CannMart has shown its ability to deliver high-quality products to IGNITE's larger market.
"The awareness of the IGNITE brand continues to build throughout Canada and our product sales continue to grow. The team at CannMart has been instrumental and has proven its competency to navigate the regulations within the legal market," he said. "We trust that our brand can be nurtured in accordance with our high standards and together we can continue to build on our early success as we look to grow market share."
Furthermore, CannMart and IGNITE have amended the licensing agreement to add exclusivity to the markets in Canada. The revised agreement grants CannMart an exclusive licence to use certain IGNITE brand trademarks on legal cannabis-based products in consideration for certain royalty payments.
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