Cannbit signs collaboration agreement with Namaste

medical cannabis

The companies will register Cannbit for overseas trading and dual-listing of Namaste on the TASE.

Cannbit, which was merged into A.L. Capital Holdings (2016) Ltd. (TASE:CPHO.M), announced the signing of a memorandum of understanding (MOU) with Canadian company Namaste Technologies. The two companies have already cooperated in the past.

Namaste, traded in Canada at a market cap of $364 million, sells cannabis products and products related to cannabis consumption in Canada and 20 other countries. Most of its sales are online. Cannbit has licenses to grow cannabis in Israel, and is in the process of organizing activity in this area. The company estimates that it will begin producing cannabis in early 2019. Cannbit, managed by CEO Yaron Razon, has a NIS 76 million market cap on the Tel Aviv Stock Exchange (TASE).

Under the MOU, Namaste will help Cannbit establish cannabis ventures outside Israel and in raising capital from private investors outside Israel and on foreign stock exchanges. Cannbit will help Namaste consider the option of dual listing on the TASE. Cannbit will introduce Namaste to Israeli cannabis research and development companies for investment purposes.

The parties also plan to found a chain of coffee, leisure, and explanatory centers in Israel. Patients with licenses for using medical cannabis will be able to obtain guidance and explanations at these centers about how to use medical cannabis in combination with proper nutrition, subject to the security and medical licenses necessary for activity of this type.

The two companies held a joint investments conference in Tel Aviv today.

As part of Namaste and Cannbit's previous cooperation, Namaste invested NIS 2.5 million in Cannbit for 4.4% of the latter's shares. The two companies signed an agreement whereby Namaste will buy cannabis from Cannbit for inclusion in its products, and for sale through its marketing channels.

Cannbit also has an agreement to produce cannabis for Tikun Olam, holder of the largest share in the Israeli cannabis market, effective as soon as Cannbit begins actual production of cannabis, on condition that it receives all the permits for this in 2019, as planned.

Published by Globes, Israel business news - en.globes.co.il - on December 12, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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