Namaste Technologies Inc., a marketplace platform for cannabis and wellness products, today provided a corporate update including on its wholly owned subsidiary, CannMart Labs Inc.
Labs Update
The Company is pleased to confirm that Labs has successfully completed a number of test batches and is working diligently to finalize processes for the imminent launch of commercial products. Test batches have produced exceptionally clear gold extracts resulting from the use of high-quality input biomass and utilizing Labs’ state of the art BHO extraction system that isolates pure cannabinoid compounds and terpenes. The initial Certificates of Analysis have shown exceptionally high terpene content. Terpene content is the value add of “Live” products, which gives these products their enhanced taste and aroma valued by consumers.
Launch of Limited Edition Roilty SKUs
Furthermore, through its in-house brand Roilty, Labs will be launching a limited edition run of two SKUs: Roil Lemon Haze live resin product and Priest Punch live resin product.
A Roil Lemon Haze live resin product will be marketed as a glistening golden colour, soft and bursting with terpene goodness expected around 10%. This SKU leading the terpene charge is Terpinolene – a lesser known and often rare terpene responsible for the herbaceous and citrus aromas followed by Beta-Caryophyllene, which gives a spicy, tangy flavour. The SKU hearkens back to its roots, as a citrusy, skunky behemoth with input biomass, a cross between strains Super Silver Haze and Lemon Skunk.
Roilty’s Priest Punch live resin product will be marketed as a gooey gold, smooth textured product, oozing with rich, juicy terpenes expected around 10%. For this SKU, beta-ocimene has a strong influence, with floral overtones and aromas of grape and diesel. The input material is a trichome dream, perfect for BHO extraction – bred from heavy-hitting Church and Grape strains.
Both SKUs shall be available to purchase at CannMart.com by medical customers, and available in recreational channels through expected sales to provincial buyers, in each case by the end of October 2021. As Labs produces these and further SKUs, the Company looks forward to generating higher margins in its drive for profitability.
Share Issuance Related to CannMart Labs
The Company intends to issue, an aggregate of 1,712,198 common shares (issued at a deemed price of $0.1574, which is equal to the seven-day volume weighted average), without a hold period, as payment of the third tranche of the remaining base purchase price to the vendors under the share purchase agreement for the acquisition of the remaining 49% interest in Labs first announced on November 18, 2020. The issuance is considered to be a shares for debt transaction under the policies of the TSX Venture Exchange (the “TSX-V”) and remains subject to TSX-V approval.
RSU Grant
The Compensation Committee of the Company has reviewed and discussed certain changes to its non-employee director compensation given (i) the approval of Shareholders to the adoption of a deferred share unit plan (the “DSU Plan”) and restricted share unit award plan (the “RSU Plan”) at the Corporation’s last Annual General Meeting held on Tuesday, September 29, 2020 and (ii) receipt of recommendations of independent industry experts to best determine the overall remuneration package for non-employee directors, in order to stay competitive in the marketplace and to attract and retain top-tier directors. To that end the Compensation Committee considered long term incentive program benchmarks, including option and RSU grants, as established from peer companies with comparable market capitalization, operating not only within the cannabis sector, but in similar and adjacent sectors, and compared those those against historical grants and standards.
On the basis of Compensation Committee recommendations, the Board of Directors of the Company (the “Board”) has thereby approved appropriate changes to the non-employee director compensation plan, including rebalancing non-employee director compensation such that approximately 43% of non-employee director baseline compensation (before chair and committee fees) is provided in the form of awards, instead of cash subject to the DSU Plan and/or RSU Plan, re-affirming the Board’s commitment to the future success of the Company.
Connected thereto the Board has approved the grant of 1,612,500 vested restricted share units in aggregate to the Company’s four non-employee directors and the Company is thereby reserving 1,612,500 common shares for issuance in connection therewith, all in accordance with the rules of the TSX Venture Exchange and the Company’s RSU Plan.
Corporate Re-Positioning
In furtherance of the Company’s evolution to wellness announced in February 2021, the Company looks forward to launching soon the re-positioning of its corporate identity as first disclosed in September 2020. Stay tuned!
About Namaste Technologies Inc.
Namaste Technologies is a marketplace platform for cannabis and wellness products. At CannMart.com, the Company provides Canadian medical customers with a diverse selection of hand-picked products from a multitude of federally licensed cultivators and US customers with access to hemp-derived CBD and smoking accessories. The Company also distributes licensed and in-house branded cannabis and cannabis derived products in Canada through a number of provincial government control boards and retailing bodies and facilitates licensed cannabis retailer sales online in Saskatchewan. Namaste’s global technology and continuous innovation address local needs in a burgeoning cannabis industry requiring smart solutions.
