NAMASTE ANNOUNCES NON-BINDING LETTER OF INTENT WITH O CANNABIS CLINIC FOR MANAGEMENT SERVICES
December 05 2017 - 10:49AM
InvestorsHub NewsWire
NAMASTE ANNOUNCES NON-BINDING LETTER OF INTENT
WITH O CANNABIS CLINIC FOR MANAGEMENT
SERVICES
Vancouver, BC -- December 5, 2017 --
InvestorsHub NewsWire -- Namaste Technologies Inc.
(“Namaste” or the “Company”)
(CSE:N)(OTCQB:NXTTF)(FRANKFURT:M5BQ)
is pleased to announce that it has signed an non-binding letter of
intent (“LOI”) with O Cannabis We Stand On
Guard For Thee (“O Cannabis”) under which O
Cannabis will provide patient consultation services to Namaste’s
wholly owned subsidiary, NamasteMD Inc.
(“NamasteMD”). Pursuant to the LOI, O Cannabis
will provide management services to NamasteMD that will include
patient consultations, education, strain recommendations and
medical document issuance to qualified patients under the guidance
of nurse practitioners. In addition to these services, O Cannabis
will also be offering a select range of Namaste’s vaporizer
hardware in their online platform.
This LOI represents a major milestone for
Namaste in the expansion of its platform into medical cannabis
sales using the Company’s innovative telemedicine application, and
will provide an incredibly efficient platform for patient
consultations and medical documentation issuance. NamasteMD
customers will have the ability to connect to Namaste’s e-commerce
platform through Namaste’s wholly owned subsidiary, Cannmart Inc.
(“CannMart”), which will provide patients with an
online marketplace for medical cannabis products, including strains
sourced from both domestic and international licensed producers.
CannMart is a late stage applicant for a “Sales Only License” under
the Canadian Access to Cannabis for Medical Purposes Regulations
(“ACMPR”) program. Namaste’s goal is to become
Canada’s leading medical cannabis online retailer by leveraging its
existing consumer base, along with utilizing its advanced expertise
in e-commerce. In doing so, Namaste believes it can successfully
convert and on-board patients at an accelerated growth rate and
offer the best quality of care for its patients. Namaste believes
that with its aggressive growth strategy and the implementation of
NamasteMD, it will be able to accumulate a minimum of 18,200
patients within the first calendar year of operations. This figure
is based on Namaste’s current site traffic of 1,000 unique visitors
per day with a 5% conversion rate, which would generate 350
patients per week. Namaste expects each patient acquisition to cost
on average $60 per patient, based on the terms of the LOI, which is
currently lower than any industry standard for medical
patients.
About O Cannabis
O Cannabis offers affordable medical cannabis
telemedicine appointments to patients across Canada, allowing
timely access to quality medicine in remote and under-serviced
regions; from Yukon to Newfoundland and everywhere in between. O
Cannabis has built a name for themselves by offering unparalleled
patient education and industry leading follow up care. O Cannabis
patients report their appreciation for the easy and fun
telemedicine experience, O Cannabis’ streamlined approach to
medical document issuance and the exceptional care patients receive
at each step of their medical cannabis journey.
Terms of the LOI
Under the terms of the LOI, the O Cannabis
management team will be responsible for the general operation of
NamasteMD’s platform and will provide the following
services:
- Patient Qualification
- Patient Onboarding
- Education
- Recommendations (strains and
dosages)
- Follow-up Care
- Medical Documents
- Self-titration Training
- Maintaining 75% patient retention
rates
In return for these services, Namaste will pay O
Cannabis as follows:
- CAD
$60 for each patient approval, being a patient consultation
resulting in the issuance of a prescription for medical
cannabis
- 50%
of the net profit for “platinum” packages, as will be outlined in
the definitive agreement
- 5%
of the gross revenue collected for patients where medical cannabis
is sourced from local licensed producers
- 10%
of the gross revenue collected for patients where medical cannabis
is sourced from international licensed producers
- 15%
of the gross revenue collected through the sale of Namaste’s
vaporizers and cannabis ancillary products, which O Cannabis will
add to its website
- The
issuance of 15,000 common share stock options to the O Cannabis
management team
Closing of the proposed definitive agreement
will be contingent on negotiation and execution of definitive
documentation containing standard terms, representations and
warranties and indemnities for an agreement of this nature,
approval of the agreement by each party’s respective board of
directors and shareholders, if applicable, and by the Canadian
Securities Exchange, if applicable.
NamasteMD is an innovative application that
connects patients with medical practitioners through a secure video
conference call and incorporates industry-leading facial
recognition technology, including instant age and identity
verification using data feeds linked to federal databases.
The O Cannabis management team is a highly trained group of medical
professionals that offer industry leading care for their patients.
Through the NamasteMD platform, patients will be offered a variety
of packages that will include both free and paid options. Once a
patient receives a medical document, they will have access to
purchase directly from CannMart’s medical cannabis marketplace. The
Company expects full launch of NamasteMD, including the app for
both Apple and Android platforms, to be in operation and accepting
patients as soon as December 15, 2017.
Management Commentary
Sean Dollinger, President and CEO of Namaste
comments: “With many of these exciting initiatives now in place,
Namaste believes it has successfully created the necessary
infrastructure to become a leader in medical cannabis sales in
Canada. In addition to Canada, Namaste believes this infrastructure
can be easily implemented into other progressive jurisdictions
where medical cannabis legislation is in place, and fully intends
on exploiting all markets where Namaste has existing operations and
market presence. Our goal now is to focus heavily on patient
acquisition through our existing database of consumers and to
accelerate growth through our e-commerce
platform.”
About Namaste Technologies
Inc.
Namaste is the largest online retailer for
medical cannabis delivery systems globally. Namaste distributes
vaporizers and smoking accessories through e-commerce sites in 26
countries and with 5 distribution hubs located around the world.
Namaste has majority market share in Europe and Australia, with
operations in the UK, US, 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@namastevapes.com
Further information on the Company and its
products can be accessed through the links below:
www.namastetechnologies.com
www.namastevaporizers.com
www.namastevaporizers.co.uk
www.everyonedoesit.com
www.everyonedoesit.co.uk
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 harbor provisions
of the Private Securities Litigation Reform Act of 1995. The CSE
has neither reviewed nor approved the contents of this press
release.
Suite 2300 – 550 Burrard Street
Vancouver, BC, V6C 2B5
Main: + 1 (786) 389-9771
www.namastetechnologies.com
info@namastevapes.com