Namaste Technologies Inc (CVE:N) (FRA:M5BQ) (OTCMKTS:NXTTF) announced Thursday that it has completed its acquisition of the remaining 49% interest in CannMart Labs Inc, making the cannabis extractor a wholly owned subsidiary.
CannMart has filed an application for a processing licence under the Cannabis Act in Canada for cannabis extraction activities, the company said.
Namaste bought the stake from MKD Holdings Inc and JLLS Holdings Inc in exchange for a purchase price of C$4 million as well as revenue-dependent earn-out payments in Namaste common shares, the company said.
READ: Namaste strikes share purchase agreement to acquire remaining 49% interest in CannMart Labs for full ownership
The earn-out payments are payable over nine fiscal quarters with a maximum payment of C$1.9 million per period. In lieu of shares, the price can be paid in cash at a 5% discount. A first tranche of C$1.6 million has been paid by way of the issuance of 7.1 million shares at a price of C$0.2258.
Cyber weekend sales
Namaste also announced that its average order value over cyber weekend increased 42% and online traffic increased 50% from 2019. The company saw 40% more giveaway entries than expected, which generated email newsletter sign ups, increased social media visits and interactions.
The company’s best dried flower sellers were CannMart brand Sage n Sour and Sensi Star; its best cartridges were Phyto Extractions brand Disposable Cart Bundle and Pink Kush 0.5g; its top edibles were Wanna brand Strawberry Lemonade 1:1 Sour Gummies and Watermelon Hybrid Sour Gummies; and its best infused oil sellers were CannMart brand Treasure Island CBD Tincture and Indiva brands CBD Soft Gels.
"We are pleased by activity this past cyber weekend to see our own CannMart and licensed brands shine alongside our valued partner brands which is a clear validation by consumers that our strategy is working," CEO Meni Morim said in a statement. "...We are clearly focused on the execution of our strategy to position Namaste as a leading cannabis company and look forward to building on this positive momentum as we head into the upcoming holiday season."
The company said it plans to hold a virtual town hall at 12 pm ET on December 16 in order to provide shareholders with an in-depth presentation on the future direction of the company. Morim will lead the presentation, which will be followed by a Q&A. Shareholders can submit questions by December 14 at email@example.com.
Namaste has appointed Edward Miller as vice president, investor relations, effective November 16. Miller brings more than 20 years of IR experience in the pharmaceutical and cannabis industry and has built several award-winning programs.
The company has granted Miller options to acquire 170,000 common shares at a price of C$0.23 per share that vest quarterly over 3 years and have a four-year term.
Namaste has launched a whistleblower program that allows employees to anonymously and confidentially report cases of workplace misconduct, the company said. The program is supported by ClearView Connects, a Canadian-based reporting solution provided by an independent, third-party supplier. Employees can safely and anonymously submit reports or questions through ClearView's website, toll-free telephone hotline or post office box.
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