Through a newly signed share purchase agreement, Namaste Technologies (TSXV: N) is bumping up the company’s stake in Manitoba-based Pineapple Express (PE) to 49%.
This $3.06 million deal increases Namaste’s current stake from 15%, which was originally purchased through a subscription agreement in June of 2018.
The stated purpose of teaming up with Pineapple Express is to add rush delivery options to products from Namaste’s subsidiary brands.
PE previously integrated with medical cannabis platform Ample Organics to provide same-day marijuana deliveries, with a goal of delivering products direct to customers in one hour or less. The delivery company currently operates in Manitoba and Ontario, with expansion plans in place for additional provinces in 2019.
With Namaste now controlling 49% of the company, the existing Pineapple Express upper management will retain control of day-to-day operations. Namaste Chief Executive Officer Sean Dollinger will join the Pineapple Express board of directors following the deal’s completion.
In a press release to shareholders, Sean Dollinger had this to say:
This latest move from Namaste to acquire stakes in other companies follows a strategic investment in Kief Cannabis last month which included a 35% right of first refusal for Namaste’s subsidiary Cannmart.
That subsidiary company also inked a supply deal with Rocky Mountain Marijuana Inc. at the end of October to help deal with the recurring issue of supply shortages in the wake of Canadian marijuana legalization.
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