Namaste Closes Acquisition of Israeli-based Cannabis Producer Cannbit

Published: June 18, 2018

Namaste Closes Acquisition of Israeli-based Cannabis Producer Cannbit

Namaste Technologies Inc. has signed a subscription agreement to acquire 10% of the issued share capital of Israeli licensed producer of medical cannabis, Cannbit Ltd for NIS 2,500,000 or approximately CAD $908,000, which includes a combination of both cash and shares.

Subsequently, Cannbit has also signed a binding agreement to complete a merger with a company listed on the Tel Aviv stock exchange, whereby Cannbit will retain 85% ownership of the combined public entity, The Company believes that its investment will be immediately accretive in nature based on the valuation metrics of the transaction which consequently valued Cannbit significantly higher than what Namaste acquired its 10% equity stake for. In anticipation of closing this transaction, Namaste has established a supply arrangement with Cannbit to export cannabis to the Canadian market (subject to approval by Health Canada and the Israeli government), and will also engage with Cannbit to expand the Company’s Israeli-based vaporizer sales platform.

Namaste remains focused on establishing domestic and international supply arrangements and investments that will secure supply channels of high-quality medical cannabis for the Company’s wholly-owned subsidiary, Cannmart Inc. (“Cannmart”). This transaction validates our strategy of sourcing quality cannabis products abroad and introducing them to the Canadian market. Early signs indicate that international cannabis producers are eager to penetrate the Canadian market, and view Namaste as a valuable resource in expanding their market share on an international level. In a relatively short period of time, Namaste has managed to solidify its position as an innovator in e-commerce technology and will leverage its multiple supply arrangements to offer Canadian patients a more diverse offering of cannabis products while remaining focused on its overall vision creating a better user experience.

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