Namaste Technologies Closes $23 Million Bought Deal Public Offering

Published: January 20, 2021

Namaste Technologies Closes $23 Million Bought Deal Public Offering

Namaste Technologies Inc., a platform for cannabis products, accessories, and education, is pleased to announce that it has closed its previously announced “bought deal” public offering for total gross proceeds of $23,023,000. The Company sold 65,780,000 units of the Company at a price of C$0.35 per Unit under the Offering, including 8,580,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Each Unit consists of one common share (a “Common Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one Common Share at an exercise price per Common Share of C$0.47 until January 19, 2024. The TSX Venture Exchange (the “Exchange”) has conditionally accepted the Warrants for listing and the Warrants are expected to be posted for trading on the Exchange later in the week under the ticker symbol N.WT.B.

Canaccord Genuity Corp., as lead underwriter, and Haywood Securities Inc., acted as underwriters for the Offering.

The underwriters received a cash underwriting fee equal to 6.0% of the aggregate gross proceeds of the Offering and were issued compensation options equal to 6.0% of the aggregate number of Units sold under the Offering  (the “Compensation Options”). Each Compensation Option is exercisable until January 19, 2023 to acquire one common share of the Company at an exercise price of $0.35.

In connection with the Offering, the Company filed a prospectus supplement dated January 15, 2021 (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated September 16, 2020 (the “Base Shelf Prospectus”) with the securities commissions or similar securities regulatory authorities in each of the provinces of Canada (other than Quebec).

The Company expects to use the net proceeds from the Offering for the further development and expansion of its business and for working capital and general corporate purposes, as further described in the Prospectus Supplement. Copies of the Prospectus Supplement and accompanying Base Shelf Prospectus may be obtained under the Company’s profile on SEDAR at and from Canaccord Genuity Corp., 161 Bay Street, Suite 3000, Toronto, ON M5J 2S1.

Headquartered in Toronto, Canada, Namaste Technologies is a leading online platform for cannabis products, accessories, and responsible education.