Namaste Announces Closing of $40.25 Million Bought Deal Financing Including Full Exercise of Over-Allotment Option
February 27 2018 - 10:35AM
InvestorsHub NewsWire
NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES
Vancouver, British Columbia -- February 27,
2018 -- InvestorsHub NewsWire -- Namaste Technologies Inc.
(“Namaste” or the “Company”)
(CSE: N) (FRA: M5BQ) (OTCMKTS:
NXTTF) is pleased to announce
that it has closed today its previously announced “bought deal”
short form prospectus offering of units, including the exercise in
full of the over-allotment option (the
“Offering”).
A total of 15,784,900 units of the Company
(“Units”) were sold at a price of $2.55 per Unit
(the “Issue Price”) for gross proceeds of
$40,251,495 (including the exercise in full of the over-allotment
option). The Offering was completed by a syndicate of underwriters
co-led by Eight Capital and Canaccord Genuity Corp. as co-lead
underwriters and joint bookrunners, and including Beacon Securities
Limited (the “Underwriters”). Each Unit was
comprised of one common share in the capital of the Company (a
“Common Share”) and one Common Share purchase
warrant of the Company (a “Warrant”). Each Warrant
entitles the holder thereof to purchase one Common Share at a price
of $3.15 for a period of 24 months following the date hereof,
subject to acceleration of the expiry date in the event the volume
weighted average price of the Common Shares on the CSE is equal to
or greater than $6.00 per Common Shares for a period of 10
consecutive trading days.
Sean Dollinger, President, and CEO of Namaste comments: “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. 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. We would
like to thank Eight Capital, Cannacord Genuity and Beacon
Securities for their support and participation in this financing as
well as our management team for their efforts in seeing this
financing through to an end. We’d also like to thank our
shareholders for their support as we look forward to a very
exciting month of March 2018”.
In consideration for their services, the Underwriters received a
cash commission equal to 6% of the gross proceeds of the Offering
and compensation options (each a “Compensation
Option”) equal to 6% of the Units sold pursuant to the
Offering. Each Compensation Option is exercisable at the Issue
Price into one unit, each comprised of one Common Share and one
Warrant (a “Compensation Warrant”) for a period of
24 months from the date hereof.. Each Compensation Warrant is
exercisable into one Common Share at a price of $3.15 for a period
of 24 months following the date hereof.
The net proceeds of the Offering are expected to be used by
Namaste to fund inventory and supplies for the CannMart facility,
to expand its customer and user base, for e-commerce upgrades and
for working capital and general corporate
purposes.
About Namaste Technologies Inc.
Namaste is the largest online retailer for medical cannabis
delivery systems globally. Namaste distributes vaporizers and
smoking accessories through 24 e-commerce sites in 20 countries and
with distribution hubs located around the world. Namaste has
majority market share in Europe and Australia, with operations in
the UK, Canada and Germany and has opened new supply channels into
emerging markets including Brazil, Mexico and Chile. Namaste,
through its acquisition of Cannmart Inc., a Canadian based
late-stage applicant for a medical cannabis distribution license
(under the ACMPR Program) is pursuing a new revenue vertical in
online retail of medical cannabis in the Canadian market. Namaste
intends to leverage its existing database of Canadian medical
cannabis consumers, along with its expertise in e-commerce to
create an online marketplace for medical cannabis patients,
offering a larger variety of product and a better user
experience.
On behalf of the Board of Directors
“Sean Dollinger”
Chief Executive Officer
Direct: +1 (786) 389 9771
Email: info@namastetechnologies.com
Further information on Namaste and its products can be accessed
through the links below:
Agreement.namastetechnologies.com
Agreement.namastevaporizers.co.uk
Agreement.everyonedoesit.co.uk
Agreement.australianvaporizers.com.au
Forward-Looking Information
This press release contains forward-looking information
based on current expectations. These statements should not be read
as guarantees of future performance or results. Such statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from those implied by such statements.
Although such statements are based on management’s reasonable
assumptions, Namaste assumes no responsibility to update or revise
forward-looking information to reflect new events or circumstances
unless required by law. Although the Company believes that the
expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because the Company can
give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
These statements speak only as of the date of this press release.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks including various
risk factors discussed in the Company’s disclosure documents, which
can be found under the Company’s profile on www.sedar.com. This
press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbour provisions of the Private Securities Litigation Reform Act
of 1995. The Canadian Securities Exchange has neither reviewed nor
approved the contents of this press release.