Namaste Technologies Inc. (OTCMKTS:NXTTF) has announced that it has signed a stock purchase agreement for the acquisition of 49% of Chocklat Inc.’s issued and outstanding shares for a cash consideration of $1.5 million. As part of the contract for the purchase, the company will appoint a Choklat member to the Board.
Vast product portfolio motivated the acquisition
Choklat is a chocolate manufacturer that has an online ecommerce site for its sales, and they equally have an established network of distributors in Canada. Recently Choklat signed a supply agreement with Sobey and so far it offers its products in more than 25 stores in Alberta with the aim to launch in western Canada and other areas in the next few months.
Namaste Technologies interim CEO, Men Morim indicated that the acquisition of 49% stake in Choklat was an excellent opportunity for the company because of the vast offering of product portfolio that can get infused with CBD or THC and offered in stores as edibles. He added that Choklat’s small batch production model was appropriate for Namaste in the manufacture of edible cannabis products within the proposed new regulations.
Expansion of Choklat’s market
The agreement offers supply and manufacturing security for Namaste’s medicinal cannabis clients as well as providing capacity for the development of the recreational market following the enactment of the proposed regulations.
Choklat CEO and founder, Brad Churchill, stated that the combination with Namaste was a great opportunity with the company recognizing the significance of direct consumer sales and e-commerce. He added that Namaste has a vision of helping of helping Choklat grow their business through white labeling of products for distribution and LP’s through CannMart. Choklat aims at making products for CannMart as it expands its target market to include the cannabis space
Choklat has already sought services of Cannabis Consulting Inc. to help them in procuring a Health Canada Processing license.
For over two years Brad Churchill has been using his prescription to research on the concept of sugar and chocolate infusion. He added that he had discovered ways of infusing CBD and THC into sugar and chocolate in almost the same dose accuracy as pharmaceutical grade.