With the latest acquisition, Namaste envisions a major exposure to Canada’s cannabis-infused edibles market.
Namaste Technologies Inc., a cannabis e-commerce company based in Canada, has reportedly inked a share purchase agreement with the Alberta-based premium chocolate maker, Choklat Inc.
As per the terms of the agreement, Namaste is likely to acquire around 49% of Choklat’s issued as well as outstanding shares for a cash consideration of C$1.5 million. Namaste will further appoint a member to the Board of Directors of Choklat, as a part of the acquisition.
Choklat Inc., for the record, manufactures superior-quality chocolates, with current sales via its online e-commerce location and a wide network of distributors throughout Canada. The company has recently signed a supply relationship with Sobeys, Canada’s second-largest food retailer. With its products available in around 25 stores in Alberta, the company looks to roll them out across Western Canada and more places in the upcoming months.
Meni Morim, the Interim CEO at Namaste Technologies, was reported saying that the acquisition of Choklat is a great achievement for the company, as it brings with it access to a vast offering of the existing products which can be infused with CBD and THC easily and be sold as edibles. Choklat’s small-batch manufacturing model is a perfect fit as per the latest proposed regulations for the edible cannabis products. Morim added that the latest deal provides secure supply and manufacturing for the company’s customers of medicinal cannabis and in addition, provides the potential for a recreational market, in case the proposed regulations are passed.
According to Choklat Founder & CEO, Brad Churchill, the deal will entail Namaste to recognize the value of direct-to-consumer sales and e-commerce, and its vision will help the company expand by white-labelling its products for all the LPs and distribution via CannMart, a subsidiary company of Namaste. He added that Choklat aims to make products for CannMart and targets its expansion in the overall cannabis space.