The C$5mln acquisition will give Namaste access to a 30,000 square-foot distribution facility in the UK
Vancouver-based (CVE:N, OCTMKTS:NXTFF) said Thursday that its wholly owned subsidiary, Namaste Bahamas will acquire UK-based AF Trading Ltd, which operates as Access Fulfillment, for C$5mln.
No capital-raise will be required as Access Fulfillment will receive half the payment in cash and the rest in Namaste stock. In exchange, Access Fulfillment will operate as Namaste's distribution center for CBD, or cannabidiol, a compound found in the hemp or cannabis plant that apparently helps with sleep and anxiety, and cannabis products in the United Kingdom.
Access Fulfillment operates a 30,000 square-foot distribution facility in the UK and holds a license to distribute pharmaceutical products.
The British acquisition will help Namaste develop its medical cannabis distribution platform in the UK. Access Fulfillment's management will sign consulting agreements for operations and business development, said the company.
READ: Namaste Technologies inks deal with BlueSky Biologicals to distribute CBD products in the UK and Europe
Namaste said it intends to launch a platform styled on its Canadian subsidiary CannMart Inc within the UK market to “help monetize on its database of over 500,000 customers.” CannMart engages in the distribution of medical cannabis and oils through an e-commerce site in Canada.
In July this year, UK Home Secretary Sajid Javid allowed doctors for the first time to prescribe cannabis-derived medicines to patients, as an alternative to prescription drugs. It followed high-profile campaigns which captured widespread media attention and evoked deep public sympathy.
Campaigners had questioned how epileptic children could be prevented from accessing medicines that significantly improved their condition while the UK remained the world’s largest exporter of medicinal cannabis.
With the change of heart in UK, Namaste Technologies has inked a deal with BlueSky Biologicals Inc to distribute their hemp-derived cannabidiol products in the United Kingdom and Europe.
Namaste also operates an online platform that markets cannabis-related products like vaporizers and smoking accessories in 20 countries and via 30 websites.
The company also maintains a database of over 1.5 million customers and has acquired Findify.io and NamasteMD, Canada's first fully integrated patient consultation portal available in the and Google Play stores.
Namaste shares were down nearly 6% to US$2.52 in afternoon trading.
Contact Uttara Choudhury at [email protected]
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