Namaste To Fully Own CannMart Labs, Awaits Processing License
The cannabis-focused platform said Thursday it has signed a share purchase agreement to acquire the remaining interest, 49%, in CannMart Labs.
In spring 2018, Namase first obtained a 51% interest in CannMart Labs, an applicant for a processing license under the Cannabis Act for cannabis extraction operations. It's set to financially support the building of its facility in Ontario.
Namaste noted that CannMart Ontario facility is built and ready for BHO extraction and that its application is in the last phase for a processing license.
Under the agreement, Toronto-headquartered company will obtain 49% interest of CannMart Labs from MKD Holdings Inc. and JLLS Holdings Inc. for a purchase price of $4.03 million, with the first part of it or $1.61 million to be paid in Namaste’s shares. The rest should be paid in equal parts in the following nine fiscal quarters, starting on the fiscal quarter that ends February 28, 2021.
Namaste added it is ready to manufacture Cannabis 2.0 products for medical channel customers at CannMart.com and recreational customers via a sister company.
"Acquiring the remaining interest in CannMart Labs is another important milestone achieved in establishing Namaste as a leading company within the Canadian cannabis sector," stated Meni Morim, Chief Executive Officer of Namaste. "CannMart Labs is in the final stage of its application for an important processing licence from Health Canada. It has installed state-of-the-art extraction technology in its facility, which when granted a licence, will be able to produce an array of cannabis products including shatter and live resin, as well as future distillate products such as vape cartridges, gel capsules, tinctures and edibles."
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