~New Director brings financial oversight as
Audit Chair; strategy and operational update identify key
improvements and marketplace direction~
VANCOUVER, April 25, 2019 /CNW/ - Namaste Technologies Inc.
("Namaste" or the "Company") (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS:
NXTTF) is pleased to provide the following corporate update with
respect to an appointment to its Board of Directors, Corporate
Strategy, and operational updates and web property improvements.
Additionally, the Company is providing an update to its Annual
General Shareholder Meeting ("AGM") plans.
Board of Directors Update
The Company is pleased to
announce that Kenneth Jones has been
appointed to the board of directors and chair of the Audit
Committee today. Ken is a highly experienced senior business leader
with deep knowledge of private and public sector operations, gained
over a 30-year career. Ken's experience includes Partner at PWC as
well as progressive roles with a Fortune 500 company. Ken has a
proven track record, globally, in successfully implementing
sustainable benefits across a variety of sectors including
manufacturing, research, public sector institutions and health
care. He is a skilled leader of change in complex organizations,
implementing high profile initiatives, under tight time frames and
on budget. Ken graduated with Bachelor of Mathematics from the
University of Waterloo.
In addition to augmenting its board, the Company expects to
establish an Advisory Board to help provide additional expertise
and strength to the Company and its current Board of Directors. The
Company will provide further updates in the coming weeks upon the
appointment of its inaugural members.
"We're making the necessary changes to strengthen our business,
our Board of Directors and the foundational technology upon which
the Company was built," said Meni
Morim, Interim CEO of Namaste. "Ken brings a wealth of
experience and financial knowledge to enhance Namaste's overall
practices and governance as chair of the Audit Committee. We are
honored to welcome Ken to our Board of Directors."
"We are focused on making changes internally and delivering
results externally. We expect that these changes will have a
positive impact in the short, medium, and long-term outlook of the
Company. An effect of this change is to provide periodic and useful
updates to our shareholders which we believe reflects our
commitment to long-term shareholder value and professional approach
to public disclosure. I am heartened by the dedication of our
staff, who are working day and night and laying the foundation for
our success, and we also remain equally appreciative of our
shareholders and their support. This Corporate Update provides some
insight into what we're developing, the path we're charting and the
shareholder value we're focused on building."
Annual General Meeting
The Company wishes to announce
the new date of its Annual General Meeting will be June 25, 2019 with a record date of April 26, 2019. The Company has retained
Kingsdale Advisors who is acting as strategic shareholder and
communications advisor and proxy solicitation agent for the
AGM.
Corporate Strategy Update
In relation to its strategy,
the Company continues to invest in technology and infrastructure
spending to position it to cater to domestic and international
licensed producers, cultivators, micro-growers and ancillary device
producers who may wish to distribute products through the Company's
proposed marketplace which is currently under development.
The Company believes that as its end-to-end business proposition
develops, it will be in a position to migrate the benefits of the
user interface, user experience flows and integration between
CannMart and the Company's other properties to the new marketplace
business model. This is expected to position the Company to
provide sellers on the marketplace with a unique customer
acquisition, conversion and distribution model that utilizes
technology, business and artificial intelligence across the entire
platform.
Operational Update for Namaste MD, CannMart, and CannMart
Labz:
The Company is continuing to focus on improving the customer
experience for customers who visit the Company's properties to
purchase cannabis products and acquire medical prescriptions for
Cannabis. In particular, the Company has made advancements to
Namaste MD, improved its focus on operational execution at CannMart
and made further advancements at CannMart Labz as discussed
below:
Advancements to Namaste MD:
The Company believes that it has implemented several
improvements to its Namaste MD application with a view to improving
the customer experience including:
Extended Compatibility for more devices: Utilizing automated
mobile testing, NamasteMD is now available on more devices than
previous iterations.
Improved Video Experience: The Company believes its video
conferencing experience has been greatly improved. Not only
will the video work on more types of devices, but the system
handles the video streams more efficiently and reliably. Push
notifications were added, to better alert the patient when a video
call is incoming to reduce missed appointments and improve
efficiency.
Improved Appointment Flow, Cancellation and Rescheduling
Processes: The appointment flow process has been improved, to give
patients more control over their appointment date and time.
Improved operational efficiency: The company is in the process
of reorganizing the nurse practitioner and patient coordinator
teams, and appointed a new team lead to help improve processes,
professional development and overall customer satisfaction. Our
goal is to provide our patients with the best possible service and
customer experience, and we are re-organizing the teams with that
focus in mind.
In addition, the Company is reviewing its entire patient care
model and aiming to introduce a more robust operating and control
environment for its nurse practitioners with a greater focus on
follow-up visits and data aggregation. In addition, the Company is
aiming to better understand the benefits of government subsidized
prescription delivery models and is expecting to expand its
relationship with clinical specialists and doctors for that
purpose. The Company is continuing to review its delivery
model and use of technology to improve the customer patient
experience, data security and patient conversions to enable and
encourage the purchase of cannabis products on the CannMart
platform and for it to become the preferred delivery model for new
patients entering our ecosystem. The Company is continuing to
explore opportunities to update and improve its other applications,
including Uppy to better integrate with the Namaste MD and better
leverage customer data and to evolve our customer's experience.
Improvements at CannMart:
The Company believes that it has introduced several important
changes to its CannMart website which presently acts as the primary
distribution channel for the Company's cannabis products. The
Company experienced some technical challenges in its initial
website roll-out, however, we have conducted a thorough
retrospective, analyzed and understood the root causes of these
challenges. The Company has gained critical knowledge about its
implementation and change-management framework and has used it to
further refine its processes. The Company believes that this
learning experience will create a strong foundation for future
success. Ultimately, the Company retains a strong desire to improve
the user experience of its customers through a more intuitive and
data focused customer interaction on its websites. We appreciate
our customers' patience with the site improvements and expect
weekly improvements in the site until we and our customers are
completely satisfied with its performance.
In addition, the company is proud to announce the creation of
its technical blog, where engineers from Namaste will post articles
sharing key technology developments happening behind the scenes.
The purpose of the tech blog is to increase transparency and
establish Namaste Technologies as a thought leader while helping us
to continue and attract top tier talent to join our mission of
revolutionizing the cannabis technology domain.
CannMart has completed the last steps necessary for the
amendment to its license to permit it to offer for sale cannabis
oil concentrates on its platform, and awaits Health Canada's
approval. Furthermore, CannMart is aiming to improve its sales
funnel by engaging more directly with patients and accelerating
their transition through its ecosystem to become dedicated
customers.
Update on CannMart Labz:
The Company has completed and
submitted its application for oil extracting and processing through
its CannMart Labz subsidiary, in which it has a majority interest.
The Company will update the public on its licensing application as
soon as practicable after receiving a response from Health
Canada.
Staff and Executive Compensation Updates
Kory Zelickson, Namaste's Vice President of
Investor Relations and Business Development has indicated to the
Company that he intends to assume a new role as CEO of a start-up
Licensed Producer, effective as of June
2019. The Company expects to continue working with Mr.
Zelickson to expand opportunities for Namaste in his new role.
"Kory has always been a core member of the management team and
leaves Namaste with a sound set of principles and ideas from which
to evolve its business model," said Meni
Morim. "We look forward to working with Kory to expand
opportunities for Namaste in his new leadership role with a
licensed producer."
"Namaste has evolved to become a leader for cannabis e-commerce
and technology," said Kory
Zelickson. "The Company has enhanced its corporate
governance and leadership team and I will remain a strong supporter
and loyal shareholder. As the Company has matured, and as an
entrepreneur, it became evident that it's time for me to take on
new entrepreneurial challenges, and therefore decided to take on a
new role as CEO of a startup. I support the Company's current
management team and will be available as a resource for Namaste on
an ongoing basis."
Namaste has entered into new or modified agreements with its
present officers, namely Interim Chief Executive Officer,
Meni Morim; its Chief Financial
Officer Kenneth Ngo; its Chief
Strategy Officer Darren Gill and its
Chief Operating Officer, David
Giardino in recognition of their contributions and to ensure
retention during this ongoing transition period for the benefit of
the Company. Mr. Morim is presently acting for the Company
under a continuing consulting arrangement pursuant to which he will
now receive a capped rate of $250 per
hour and is expected to transition to an employment agreement upon
moving permanently to Canada.
Agreements with Mr. Ngo and Mr. Gill now provide for an annual base
salary of $225,000 and $200,000, respectively with bonus entitlements of
up to one times salary. Each officer has also been granted
retention and other typical entitlements including upon termination
of their respective agreements in various circumstances. In
connection with his appointment as a Director. Mr. Kenneth Jones will be granted aggregate director
fees of $100,000 plus 250,000 stock
options subject to approval by the Board of Directors. The
Company also granted one-time payments of approximately
USD$100,000 to each of its
independent directors, Branden
Spikes and Laurens Feenstra
including in connection with recent enhanced
responsibilities.
Update on International Operations:
The Company has
expanded its relationship with a major Canadian merchant account
provider, which has arranged domestic and international payment
solutions for the Company. This expansion is contingent on final
sign off from certain banking partners, which the Company expects
to receive. In connection with this new arrangement, the Company
will remove or reclassify certain product offerings to remain
compliant with international standards. The Company expects that
normalizing its payment model and operations in this manner will
allow it to realize long-term reputational benefits from focusing
its sales and distribution through approved channels and related
sites. Furthermore, the Company has assessed certain domains and
their profitability and have ceased operations on Denmark, Sweden, Austria, New
Zealand, Israel and
Mexico domains. The Company
anticipates that these changes will not have a material impact on
revenue.
About Namaste Technologies Inc.
Namaste Technologies
powers the ultimate online customer experience for medicinal
cannabis and related products. Beginning with NamasteMD.com, the
Company's integrated telemedicine application, Namaste connects
medical clients with health care practitioners to more readily
issue and renew cannabis prescriptions online. Featuring the first
Canadian Medical Sales-Only Licence, the Company's own Cannmart.com
is your 'everything cannabis store' offering clients a large
variety of strains to fill their prescription needs. Namaste's
unique artificial intelligence (AI) engine incorporated in its
platforms and related Uppy App, completes our ecosystem by
identifying the right product and pairing to address specific
medical cannabis requirements. Namaste also provides vaporizers and
accessories across several platforms operating in more than 20
countries. Namaste's global technology addresses local needs in a
burgeoning cannabis industry requiring smart solutions. For more
information about Namaste, please visit
www.Namastetechnologies.com
Further information on the Company and its products can be
accessed through the links below:
NamasteTechnologies.com
NamasteMD.com
NamasteVapes.ca
Everyonedoesit.ca
FORWARD-LOOKING INFORMATION - This news release contains
"forward-looking information" within the meaning of applicable
securities laws. All statements contained herein that are not
historical in nature contain forward-looking information.
Forward-looking information can be identified by words or phrases
such as "may", "expect", "likely", "should", "would", "plan",
"anticipate", "intend", "potential", "proposed", "estimate",
"believe" or the negative of these terms, or other similar words,
expressions and grammatical variations thereof, or statements that
certain events or conditions "may" or "will" happen. The
forward-looking information contained in this press release,
includes, but is not limited to, statements related to: the
expected establishment of an advisory board and related benefits,
the introduction of a marketplace model as anticipated including
whether it will position the Company to provide its stakeholders
with the intended user experience or that it can grow the strategy
as intended which is subject to various uncertainties, including
delays in software development and implementation, the improvements
that the Company has implemented to improve Namaste MD and that
they will work as intended or that the features described in this
press release will meet the Company's expectations as the
technology is adopted and used by customers, that the improvements
made to its primary distribution channel CannMart will operate as
intended, the issuance of a Health Canada license to the
Company for the sale and production of cannabis concentrates which
remains subject to approval and in respect of which the Company can
provide no assurance that such licenses will be obtained or that
other features introduced to CannMart in order to facilitate
purchases of cannabis products including through other LPs will be
effective, the Company's relationship with a new payment provider
including whether it will evolve as intended or whether the desire
to normalize its business structure and operations will allow the
Company to realize long-term reputational or other benefits as
anticipated. The forward-looking information contained herein is
made as of the date of this press release and is based on
assumptions management believed to be reasonable at the time such
statements were made, including management's perceptions of future
growth, results of operations, operational matters, historical
trends, current conditions and expected future developments, as
well as other considerations that are believed to be appropriate in
the circumstances. While we consider these assumptions to be
reasonable based on information currently available to management,
there is no assurance that such expectations will prove to be
correct. By their nature, forward-looking information is subject to
inherent risks and uncertainties that may be general or specific
and which give rise to the possibility that expectations,
forecasts, predictions, projections or conclusions will not prove
to be accurate, that assumptions may not be correct and that
objectives, strategic goals and priorities will not be achieved. A
variety of factors, including known and unknown risks, many of
which are beyond our control, could cause actual results to differ
materially from the forward-looking information in this press
release. Such factors include, without limitation: risks relating
to the Company's ability to execute its business strategy and the
benefits realizable therefrom, risks specifically related to the
Company's international operations, and risks relating to the
market price of the Common Shares. Additional risk factors can also
be found in the Company's current MD&A and annual information
form, both of which have been filed under the Company's SEDAR
profile at www.sedar.com. Readers are cautioned not to put undue
reliance on forward-looking information. The Company undertakes no
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by applicable law. Forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release or has in any way approved or disapproved
of the contents of this press release.
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SOURCE Namaste Technologies Inc.