Namaste Technologies Inc. has entered into a share purchase agreement to acquire common shares in Pineapple Express Delivery Inc. and an affiliated entity, representing an additional 34% equity in exchange for such number of common shares of Namaste having an aggregate value of approximately $3.06 Million. Upon completion of the Transaction, Namaste will own 49% of the outstanding common shares of Pineapple Express.
As reported in the Company’s June 13, 2018 news release, Namaste entered into a subscription agreement to acquire 15% of the issued and outstanding shares of Pineapple Express. Under the terms of the Subscription Agreement, Namaste has the right to acquire an additional 10% of the common shares of Pineapple Express for a period of 14 months (the “Option”). Pineapple Express offers a same-day delivery service platform for medical and recreational cannabis to licensed producers across Canada.
Pineapple Express is a same-day delivery platform for medical cannabis and has launched services in Manitoba and Ontario, with plans to expand into other provinces. Namaste’s wholly-owned subsidiary, Cannmart Inc. has also recently launched same-day delivery services to its patients through Pineapple Express. The Company has been pleased with the initial roll-out of Pineapple Express delivery services and its management team who will continue to operate as an independent entity from Namaste and in offering its services to Licensed Producers across Canada.
Namaste remains focused on developing and acquiring leading technology platforms that bring value to the cannabis industry. This Agreement represents a significant milestone for the Company in diversifying its investments in innovative companies, while at the same time having the ability to offer valuable services for its medical patients. Namaste’s goal is to evolve the current landscape for online retail cannabis products by improving the user experience. The Company will continue to seek opportunities to develop and invest in innovative technology platforms and in expanding its offering in Canada and internationally.
Randy Rolph, President and CEO of Pineapple Express commented, “We are extremely excited to be deepening the relationship between Pineapple Express and Namaste. Our management team and I look forward to having Namaste support our vision for the future development of the company. We’re confident that our same-day delivery platform will offer value to both medical patients and recreational consumers across Canada.”
Sean Dollinger, President, and CEO of Namaste said, “We’re pleased to announce adding to our position in Pineapple Express, an innovative company with a strong management team focused on providing exceptional service. We are now offering same-day delivery services in Toronto through Pineapple Express and are looking forward to their expansion throughout Canada. We believe strategic investments in technology and service companies like Pineapple Express will drive innovation and provide long-term value for the Company. I’m also personally looking forward to joining Pineapple Express’ board of directors and in offering value to their team.”