Namaste Technologies Closes $40.25 Million Bought Deal Financing

Namaste Technologies Inc. (NXTTF) announced that is has closed a previously announced “bought deal” short form prospectus offering of units, which includes the exercise in full of the over-allotment option, for a sum total of $40,251,495.

The company expects to use the proceeds from the offering to expand its customer and user base, upgrade its e-commerce platform, fund inventory and supplies for its CannMart Facility, and for general corporate expenses and working capital.

“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,” said Sean Dollinger, President, and CEO of Namaste, in a statement. “We are very confident with the roll-out 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.”

Last month, the company announced an international partnership agreement with Emerald Health Therapeutics (EMHTF) to collaborate on strategic business opportunities and develop a fully-integrated e-commerce platform; leveraging Namaste’s consumer base and e-commerce technology and Emerald Health’s pharmaceutical and biotech expertise.

The company sold a total of 15,784,900 units, at a price of $2.55 per unit. A unit is defined as one common share of the company and one common share purchase warrant. Each purchase warrant enables the holder to purchase one common share of the company, at a price of $3.15 for up to 24 months.

If the volume weighted average price of the common shares on the Canadian Stock Exchange is equal to or greater than $6.00 for a period 10 consecutive trading days, the expiry date on the warrant may be accelerated.

A syndicate of underwriters, including Beacon Securities Limited, completed the offering and were co-led by Eight Capital and Canaccord Genuity Corp. as co-lead underwriters and joint bookrunners. For their services, the underwriters received a cash commission equal to 6% of the offering’s gross proceeds as well as compensation options.

Equal to 6% of the units sold in the offering, the compensation option consisted of one common share and one warrant, with an expiry date of 24 months.

William Sumner

William Sumner is a freelance writer specializing in the legal cannabis industry. You can follow William on Twitter @W_Sumner or on Medium.

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