Namaste Technologies Inc. (TSXV: N)(FRA: M5BQ)(OTCMKTS: NXTTF) has announced that it has signed an agreement to acquire 10% of the shares of Israeli medical cannabis producer Cannbit Ltd. Namaste will pay NIS 2.5 million (C$908,000) in cash and shares for the stake.
Cannbit has also signed a binding agreement to complete a merger with a company listed on the Tel Aviv Stock Exchange (TASE) with Cannbit retaining 85% ownership of the combined public entity.
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.
Cannbit CEO Yaron Razon said, "We are very pleased to have Namaste join as an investor in Cannbit. Namaste is a global leader in cannabis technology and their investment in Cannbit reinforces their confidence in our management team. We intend to work closely with Namaste to promote joint business activities in Israel and in Canada including the development of unique products and technologies."
Namaste president and CEO Sean Dollinger said, "As a pioneer of cannabis R&D, we believe Israel will play an important role in the overall cannabis market and this transaction puts the company in a great position moving forward. We feel very optimistic about the rate at which we have been able to close on many key initiatives and fully expect to continue accelerating our efforts to expand our product offering through our platform. We believe our platform offers many advantages over traditional e-commerce sites as we continue to build a revolutionary platform."
Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2018
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