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Namaste Technologies Inc
Symbol N
Shares Issued 241,855,222
Close 2018-02-26 C$ 1.74
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Namaste closes $40.25-million bought deal financing

2018-02-27 11:51 ET - News Release

Mr. Sean Dollinger reports


Namaste Technologies Inc. has closed today its previously announced bought deal short-form prospectus offering of units, including the exercise in full of the overallotment option.

A total of 15,784,900 units of the company were sold at a price of $2.55 per unit for gross proceeds of $40,251,495 (including the exercise in full of the overallotment option). The offering was completed by a syndicate of underwriters co-led by Eight Capital and Canaccord Genuity Corp. as co-lead underwriters and joint bookrunners, and including Beacon Securities Ltd. Each unit consists of one common share in the capital of the company and one common share purchase warrant of the company. Each warrant entitles the holder thereof to purchase one common share at a price of $3.15 for a period of 24 months following the date hereof, subject to acceleration of the expiry date in the event the volume-weighted average price of the common shares on the Canadian Securities Exchange is equal to or greater than $6 per common share for a period of 10 consecutive trading days. It is anticipated that the warrants will commence trading today under the symbol N.WT.

Sean Dollinger, president and chief executive officer of Namaste, comments: "We're very pleased to have closed this bought deal financing which leaves the company in a strong cash position and prepared for continued growth. We are very confident with the rollout of our strategy as it relates to NamasteMD and Cannmart as well as our plans to launch similar models throughout our global networks of consumer databases and websites. We believe that Namaste has positioned itself to become a global leader in the medical cannabis industry. We would like to thank Eight Capital, Cannaccord Genuity and Beacon Securities for their support and participation in this financing as well as our management team for their efforts in seeing this financing through to an end. We'd also like to thank our shareholders for their support as we look forward to a very exciting month of March, 2018."

In consideration for their services, the underwriters received a cash commission equal to 6 per cent of the gross proceeds of the offering and compensation options equal to 6 per cent of the units sold pursuant to the offering. Each compensation option is exercisable at the issue price into one unit, each consisting of one common share and one warrant for a period of 24 months from the date hereof. Each compensation warrant is exercisable into one common share at a price of $3.15 for a period of 24 months following the date hereof.

The net proceeds of the offering are expected to be used by Namaste to finance inventory and supplies for the Cannmart facility, to expand its customer and user base, for e-commerce upgrades, and for working capital and general corporate purposes.

About Namaste Technologies Inc.

Namaste is the largest on-line retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through e-commerce sites in 26 countries and with five distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the United Kingdom, Canada and Germany, and has opened new supply channels into emerging markets including Brazil, Mexico and Chile. Namaste, through its acquisition of Cannmart Inc., a Canadian-based late-stage applicant for a medical cannabis distribution licence (under the ACMPR (Access to Cannabis for Medical Purposes Regulations) program), is pursuing a new revenue vertical in on-line retail of medical cannabis in the Canadian market.

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