The California cannabis company known for its marijuana flower crowns and special holiday products, Lowell Herb Co., is teaming up with Namaste Technologies (NXTTF) to launch its products in Canada. Namaste signed a supply and distribution agreement with Lowell Herb to launch ultra premium Lowell Smokes products for the Canadian recreational and medical cannabis markets.
In anticipation of Canada’s roll-out of legal recreational cannabis, the deal represents a strategic partnership between Namaste and Lowell Smokes to leverage Namaste’s resources and Lowell’s international brand appeal. According to the company statement, Namaste will work with Lowell Smoke’s procurement team to source the highest quality cannabis grown with organic methods and facilitate packaging and distribution through the Company’s wholly-owned subsidiary, Cannmart Inc. Namaste anticipates a strong demand for organic cannabis products as the general consumer market becomes more conscious of the products they consume.
“We are thrilled to announce our partnership with Namaste. Lowell Herb co is the fastest growing cannabis brand in California, and we believe that there is a massive opportunity for our brand internationally,” said David Elias, President and CEO of Lowell Herb Co. “Working with Namaste, we are confident that they are the perfect partner to help us enter the Canadian market. They have a unique offering, and they are solid operators with deep domain expertise in eCommerce.”
Lowell Smokes has established itself as one of the strongest brands in the quickly growing and highly competitive market of California. Its products are in over 250 dispensaries in the state. In a recent BDS Analytics report, Lowell Smokes ranked as the #1 pre-roll brand in California amongst over 50 other brands listed, with an impressive 12% market share. The company has also managed to amp up its star power with celebrities like N.O.R.E, Snoop Dogg, Jimmy Kimmel, Sarah Silverman, Bella Thorne, Bria Vinaite and Sasha Lane talking about the brand and posting content on social media.
“We have seen the sales data in California, the largest and most competitive market in the US, and it’s clear that customers love and adore the Lowell brand,” said Sean Dollinger, President, and CEO of Namaste Technologies. “We feel confident that the market for organic cannabis products will play an important role for Canadian consumers and that the timing is perfect for Namaste to not only help the team at Lowell take advantage of the opportunity in Canada but also to help them explore the international marketplace.”
Terms Of The Deal
The company stated that the terms of the agreement are as follows:
· Namaste will secure supply of high-quality cannabis and produce Lowell Smoke’s branded products on-site at Cannmart.
· Lowell Smokes will provide packaging and branding guidelines, in compliance with Health Canada regulations.
· Lowell Smokes will pay a monthly rental fee that will include storage and overhead costs to Cannmart.
· Lowell Smokes will pay Namaste a 5% royalty fee for all products sold through Cannmart.
· Lowell Smokes will provide Namaste with wholesale prices for non-cannabis products that will be sold through Namaste’s e-commerce platform.
Namaste stock was lately trading at $1.24 on the OTC Markets, down from its 52-week high of $3.47, but above its year low of 13 cents. On the Toronto Venture Exchange, the stock was trading at C$1.61, not far from its year high of C$1.75. Namaste said it will continue to pursue strategic partnerships where it can leverage their e-commerce and technology platform to provide value to brands like Lowell Smokes.