The company will purchase just shy of 47,000 shares of Kief Cannabis at a price of $5.35 per share, acquiring 3% of Kief’s outstanding common shares.
This investment follows Namaste’s subsidiary company Cannmart signing a supply deal to acquire medical marijuana through Kief earlier in the summer.
Namaste President Sean Dollinger commented on the investment deal:
“We strongly believe that craft cannabis products will add significant value to our platform through Cannmart and that many of the strains which we plan to introduce have not yet been seen on the market. Thanks to Kief Cannabis and their team for understanding the value of what Namaste brings to craft growers and are excited to offer their products to our patients in the future.”
Under the terms of the previous supply deal and in conjunction with the new investment, Cannmart has now gained a 35% right of first refusal on all cannabis products produced by Kief, which offers a strategic advantage in the face of chronic marijuana shortages since full legalization came into effect.
Kief was recently granted a Confirmation Of Readiness letter from Health Canada and is gearing up to begin large-scale operations next month when the company expects to be granted a full production license.
Chief Executive Officer Jesse Denton had this to say about the new partnership:
“The entire team at Kief Cannabis is thrilled to have entered into a strategic relationship with one of the industry’s most forward-thinking companies. Namaste’s recent announcement regarding the launch of their craft cannabis and micro-cultivator platform will provide great exposure to smaller producers and further demonstrates our shared vision to bring high-quality products to customers.“
Namaste Technologies received official licensing to provide medical marijuana to customers online via the Access to Cannabis for Medical Purposes Regulations in September.
In related news, Namaste subsidiary Cannmart also inked a medical marijuana supply deal with Rocky Mountain Marijuana Inc. last month.
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