TORONTO, April 1, 2020 /CNW/ - Namaste Technologies
Inc. ("Namaste" or the "Company") (TSXV: N) (FRANKFURT: M5BQ)
(OTCMKTS: NXTTF), a leading online platform for cannabis
products, accessories, and responsible education, today provides an
update with respect to the impact from the COVID-19 virus outbreak
on its current operations.
On March 23, 2020 the Ontario government announced non-essential
services must close their doors due to the COVID-19 pandemic,
however certain sectors of the economy including liquor and
cannabis retail and wholesale operations have been deemed essential
services and are permitted to operate. Other provincial governments
have followed Ontario's lead and
many online and retail cannabis stores remain open across
Canada. Namaste's wholly owned
subsidiary, CannMart Inc. ("CannMart") plays an important role
within the Canadian cannabis supply chain and is committed to
remain open to serve its online patients and B2B customers
including provincial government stores. Where possible employees
are working from home and others are adhering to strict operating
procedures to safeguard the health and safety of staff to ensure
operations remain unaffected. To date, there have been no known
cases of COVID-19 at any of Namaste offices or facilities and there
have been no operational disruptions.
"In these extraordinary times, our thoughts go out to those
working the frontlines and those who have been touched by the
coronavirus," said Meni Morim, CEO
of Namaste Technologies. "The health and safety of our people,
patients and customers, business partners, investors and their
communities are our top priority. We will continue to monitor the
progress of COVID-19 developments and will act accordingly for the
health and safety of all stakeholders."
Namaste also announces its continuing effort to strengthen its
business model with the addition of Adastra Labs to the Namaste and
CannMart family. CannMart Labs Inc. ("CannMart Labs") has entered
into an agreement with Adastra Labs Holdings Ltd. (CSE: XTRX)
(FRANKFURT: D2EP) ("Adastra") to supply cannabis extract and
concentrate products. Adastra is a provider of same-site Health
Canada licensed cannabis extraction and analytical testing
services. The agreement provides for supply of cannabis extract and
concentrates for Namaste's family of products available through
CannMart.com and Namaste's network of government cannabis stores.
Under the terms of the agreement, Adastra will supply standard
processing services to CannMart Labs for cannabis extract and
concentrate products over a period of 12 months expected to begin
on May 1st, 2020.
According to a recent article in the Marijuana Business Daily
industry sources say cannabis stores in Ontario and Alberta have reported unprecedented demand due
in part to the COVID-19 outbreak. Namaste is committed to managing
the recent surge in demand by keeping the supply lines open to its
patients and customers while continuing to focus on employee and
customer health. The Company has been successful at adding
additional cannabis brands and products to CannMart's product line.
Adastra Labs is a part of Namaste's increase in focus on profitable
business relationships as it navigates the new realities facing the
cannabis industry.
As previously announced in January, CannMart submitted
notification for several new product SKUs including edible cannabis
products, which are being manufactured by Choklat Inc, a company
that Namaste holds a 49% equity interest in. These products are to
be formulated, developed and packaged to meet the regulatory
requirements as set out by Health Canada. While the Company
expected to make these new products available in March, delays in
packaging materials has caused the Company to defer its delivery
schedule at this time.
COVID-19 Regulatory Relief
On March 18, 2020, the Canadian Securities
Administrators issued a notice stating that securities regulators
will be providing coordinated relief consisting of a 45-day
extension for certain periodic filings required to be made on or
prior to June 1, 2020. This blanket
relief, as a result of the COVID19 pandemic, applies to reporting
issuers and applies to financial statements, management's
discussion and analysis, annual information forms, and certain
other ancillary documents normally required to be filed in a timely
manner under securities legislation.
As a result of the pandemic impact on internal and regulator
resources, Namaste has elected to take advantage of the blanked
relief granted pursuant to BC Instrument 51-515 and Ontario
Instrument 51-502 in respect of the following:
- the requirement to file audited financial statements for the
year ended November 31, 2019 (the
"Financial Statements") within 120 days of the Company's financial
year end as required by section 4.2(b) of National Instrument
51-102 (NI"51-102");
- the requirement to file management discussion and analysis (the
"MD&A") for the period covered by the Financial Statements
within 120 days of the Company's financial year end as required by
section 5.1(2) of NI 51-102; and
- the requirement to file certifications of the Financial
Statements (the "Certificates" and together with the Financial
Statements, the "Annual Filings") pursuant to section 4.1 of
National Instrument 52-109.
Namaste currently expects to file the Annual Filings by
April 30, 2020.
Management and certain other insiders of Namaste are subject to
an insider trading blackout which reflects the principles in
Section 9 of National Policy 11-207 for until such time as Namaste
has filed its Annual Filings.
Other than as previously disclosed by the Company, there have
been no material business developments since the date of the
Company's most recent filing of its interim financial reports and
the associate management discussion and analysis.
Pineapple Express Update
World-Class Extractions Inc.
(CSE: PUMP) (FRA:WCF) (OTCQB:WCEXF) ("WCE"), an innovation-driven
company that deploys and manages purpose-built cannabis and hemp
extraction and processing centres, has acquired a controlling
interest in Pineapple Express Delivery Inc. ("Pineapple Express
Delivery"), a privately held, Toronto-based delivery company in which
Namaste holds both common shares and debt. As part of the
transaction, Namaste will be able to convert its outstanding debt
(approximately $1.6M) into the same
value of WCE common shares in 11 months time. In addition, Namaste
has granted WCE the option to acquire Namaste's common shares of
Pineapple Express Delivery, which is exercisable during a 60 day
period beginning two years following the closing of the transaction
between WCE and Pineapple Express Delivery. All funds paid as a
result of the transaction, will be received by, and remain in
Pineapple Express Delivery to further fuel its growth and
ongoing operations. This transaction allows Namaste's
management to increase their focus on Namaste's core business,
while adding a new conversion feature to Pineapple Express
Delivery's debt thus providing a path to additional liquidity in
the future.
About Adastra Labs
Adastra Labs Holdings Ltd. is a
Langley, BC-based cannabis company
and through its wholly owned subsidiaries, Adastra Labs Inc. and
Chemia Analytics Inc., is a licensed Standard Processor and
licensed Analytical Testing Laboratory under the Cannabis Act
administered by Health Canada, with licences to produce cannabis
extracts and provide third party analytical testing services. These
licences enable the Company's subsidiaries to produce, package,
sell (wholesale), and export medically focused and recreational
cannabis extract and concentrate products in Canada to other licensed entities and
internationally in jurisdictions where medical cannabis extraction
products are legal. For more information visit
www.adastralabs.ca.
About Namaste Technologies Inc.
With headquarters in
Toronto, ON, and offices in both
B.C. and around the globe, Namaste Technologies is a leading online
platform for cannabis products, accessories, and responsible
education. The company's 'everything cannabis store', CannMart.com,
provides customers with a diverse selection of hand-picked products
from a multitude of federally-licensed cultivators, all on one
convenient site. Namaste's global technology and continuous
innovation address local needs in a burgeoning cannabis industry
requiring smart solutions.
Information on the Company and its many products can be accessed
through the links below:
NamasteTechnologies.com
NamasteMD.com
Cannmart.com
NamasteVapes.ca
Everyonedoesit.ca
FORWARD-LOOKING INFORMATION – This news release contains
"forward-looking information" within the meaning of applicable
securities laws. All statements contained herein that are not
historical in nature contain forward-looking information.
Forward-looking information can be identified by words or phrases
such as "may", "expect", "likely", "should", "would", "plan",
"anticipate", "intend", "potential", "proposed", "estimate",
"believe" or the negative of these terms, or other similar words,
expressions and grammatical variations thereof, or statements that
certain events or conditions "may" or "will" happen. The
forward-looking information contained herein is made as of the date
of this press release and is based on assumptions management
believed to be reasonable at the time such statements were made,
including management's perceptions of Namaste's standing in the
online marketplace for cannabis products, management's perceptions
of Adastra Labs and their standing in the cannabis industry, the
expectation by management that its operations will remain
unaffected by the Covid-19 pandemic, the expectation that Adastra
will supply standard processing services to CannMart Labs for
cannabis extract and concentrate products over a period of 12
months and the expected timing for the commencement of such
services, the expectation that Choklat products will be offered
through CannMart following the delay as a result of the Covid-19
pandemic and its effect on the supply chain, Namaste's beliefs with
respect to the timing of its Annual Filings, Namaste's belief that
the WCE transaction will allow Namaste's management to increase
their focus on the growth of Namaste's core business while the
debt's new conversion feature provides a path to additional
liquidity and future growth, results of operations, operational
matters, historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances. While we consider these
assumptions to be reasonable based on information currently
available to management, there is no assurance that such
expectations will prove to be correct. By their nature,
forward-looking information is subject to inherent risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. A variety of factors,
including known and unknown risks, many of which are beyond our
control, could cause actual results to differ materially from the
forward-looking information in this press release. Such factors
include, without limitation: risks relating to the Company's
ability to execute its business strategy and the benefits
realizable therefrom, risks specifically related to the Company's
international operations, and risks relating to the market price of
Namaste common shares. Additional risk factors can also be found in
the Company's current MD&A and annual information form, both of
which have been filed under the Company's SEDAR profile at
www.sedar.com. Readers are cautioned not to put undue reliance on
forward-looking information. The Company undertakes no obligation
to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by applicable law. Forward-looking statements contained in
this news release are expressly qualified by this cautionary
statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release or has in any way approved or disapproved
of the contents of this press release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/namaste-provides-covid-19-operational-update-and-announces-agreement-with-adastra-labs-301033125.html
SOURCE Namaste Technologies Inc.