The cannabis company said Choklat submitted a fully completed license application to Health Canada, giving it a head start in getting its products on shelves come October
() (OTCMKTS:NXTTF) is gearing up for the legalization of edible CBD products in Canada after its recent acquisition of premium chocolate maker Choklat Inc.
The Toronto-based cannabis company updated shareholders on Friday on its progress with the transaction, which was announced in March.
Namaste now owns 49% of the chocolate company, which has non-infused products in over 150 retail outlets across Canada.
READ: Namaste Technologies looks to a brighter future as it aims to be the world’s leading cannabis marketplace
This week, Chokolat submitted its evidence package to Health Canada, a key step that marks the completion of its cannabis license application. Operators must have a fully built compliant facility before applying for a license.
"The submission of an evidence package to Health Canada is a major milestone for Choklat, and what we believe to be one of the first completed applications in the industry," said Meni Morim, interim CEO of Namaste Technologies.
“By making a strategic investment in Choklat, and converting their existing facility, Choklat will be better prepared to meet these changes and go to market timeline.”
Pending approval from Health Canada, Namaste anticipates production to begin immediately, Morim said in a statement.
Brad Churchill, CEO of Chokolat, said that the company is ready for potential legalization in October. The company has a non-binding agreement for edible products with a Montreal-based company that totals over C$3 million, according to Churchill.
Pineapple to deliver too
Namaste also informed investors on the advancement of funds to Pineapple Express Delivery Inc, a cannabis delivery service in which Namaste owns a 49% stake.
The company is advancing a US$1.2 million loan to the delivery service to allow it to scale up operations throughout Canada.
The promissory note is due on March 31, 2020 and bears an interest rate of 12% per year. Namaste may convert the loan into equity on August 14, 2019, giving the cannabis company a majority stake in Pineapple Express.
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