Namaste Technologies Inc. announced on Mar. 13 that it has completed the previously announced acquisition of 49% of the common shares of Toronto-based Pineapple Express Delivery Inc. (“Pineapple Express”).
In June 2018, the Company announced that it had entered into a subscription agreement to acquire 15% of the common shares of Pineapple for $1,000,000 which comprised of $850,000 in cash and $150,000 in Namaste common shares (the “Subscription Agreement”). In December 2018, the Company announced that it had entered into a binding agreement (the “Purchase Agreement”) with shareholders of Pineapple Express to acquire an additional 34% of the outstanding common shares of Pineapple Express. Pursuant to the terms of the Purchase Agreement, the Company issued the selling shareholders of Pineapple Express such number of Namaste common shares having an aggregate value of approximately $3.06 Million, based on the closing price of Namaste’s common shares on the TSX Venture Exchange on December 14, 2018 (the “Transaction”). Following closing of the Transaction, Namaste now owns 49% of the issued and outstanding common shares of Pineapple Express.
Under the terms of the Subscription Agreement dated June 2018, Namaste has the right to acquire an additional 10% of the common shares of Pineapple Express for $1,200,000 within 14 months from closing of the Subscription Agreement. In connection with the completion of the Transaction, Darren Gill, Chief Strategy Officer of the Company, will be appointed to the as a director of Pineapple Express.
“Pineapple Express is a premier delivery company when it comes to cannabis in Canada, and we look forward to working closely with Randy and his team to continue to grow the business,” said Meni Morim, Interim CEO of Namaste Technologies Inc. “The acquisition of the shares of Pineapple Express is an important component in Namaste’s growth strategy and customer service platform, and shows follow-through, as we continue to operate business as usual and moving forward. Having Pineapple Express as part of our family is an efficient way to get medicinal cannabis to customers in the Greater Toronto Area and across Canada as quickly and efficiently as possible. We remain focused on execution of our 2019 strategy and are pleased to have seen this project through.”
Namaste’s purchase of shares of Pineapple Express supports the Company’s strategy to invest in innovative companies which bring value to the Company and to the broader market as a value service for Cannmart.com, Licensed Producers and regulated dispensaries. Namaste believes that same-day delivery for medical and recreational cannabis through Pineapple Express’ platform will provide patients and consumers with added-value now and expanded service potential as the Pineapple Express platform expands.
“We’re very happy to become a partner with Namaste through their investment,” said Randy Rolph, CEO of Pineapple Express Delivery Inc. “Pineapple Express has made great strides and works with some of the top cannabis companies in Canada, and we look forward to continue to grow our network with the support of Namaste.”
About Pineapple Express Delivery Inc.
The Pineapple Express Delivery Inc. management team has over 10 years of experience offering same-day, 60-minute delivery services in multiple industries across Canada. Pineapple Express offers a personalized experience for its customers and has established in-depth security and delivery protocols to facilitate same-day delivery of medical and recreational cannabis across the country. Pineapple Express has been providing a same day delivery option to the legal cannabis industry from October 17th, 2018 and has provincial offices set up across Canada. For more information visit:www.pineappleexpressdelivery.com