logo-loader
viewNamaste Technologies Inc

Namaste Technologies to lend C$300,000 to chocolate maker Choklat to maximise opportunity for edibles

Namaste currently holds a 49% interest in Choklat and revealed it had now struck a secured convertible loan deal

Namaste Technologies Inc -
The loan bears interest to Namaste at a rate of 12% per year and the principal and all accrued interest are payable up to December 31, 2020

Namaste Technologies Inc (CVE:N) (OTCMKTS:NXTTF), the cannabis-focused online platform, is set to lend C$300,000 to Choklat, an Alberta-based craft chocolate manufacturer to "maximize the pending market opportunity for edibles", the company said. 

Namaste currently holds a 49% interest in Choklat and revealed it had now struck a secured convertible loan deal. 

READ: Namaste Technologies looks to become the ‘Amazon of cannabis’ with its integrated, intelligent cannabis experience

The loan bears interest at a rate of 12% per year and the principal and all accrued interest are payable up to December 31, 2020.

If Choklat fails to repay any principal or interest, it will automatically convert into common shares of Choklat at a deemed value of $0.152 each.

Choklat, the largest premium craft chocolate maker in Canada, has also granted to Namaste a security interest in all its present and after-acquired property for five years.

"We're investing in Choklat to ensure they're able to maximize the pending market opportunity for edibles," Meni Morim, chief executive at Namaste Technologies Inc, told investors.

Supply deal with Sobeys

Choklat has existing sales through its online eCommerce site and through a network of distributors across Canada. It has struck a supply deal with Sobeys and already has products in 25 stores in Alberta and aims to roll out in Western Canada and beyond in the coming months.

Namaste said Choklat had seen significant expansion while preparing for the legalization of edibles, with non-infused products now available in over 150 retail outlets across Canada, including an increasing number of Safeway and Sobeys's stores in Western Canada.

Contact the author at [email protected]

Quick facts: Namaste Technologies Inc

Price: 0.38 CAD

TSX-V:N
Market: TSX-V
Market Cap: $123.03 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Namaste Technologies Inc named herein, including the promotion by the Company of Namaste Technologies Inc in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Buds & Duds: Cannabis stocks a mixed bag as big names report results;...

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, slipped 0.9% at 128.9 points. Elsewhere, the OTCQX Cannabis Index gained 1.4% at 474.7 points. Buds today were Weekend Unlimited Inc (CSE:POT) (OTCQB:WKULF), Namaste Technologies...

1 day, 2 hours ago

2 min read