Namaste Technologies Inc. (TSXV:N) (OTC:NXTTF) announced Monday that Choklat Inc, which Namaste has a 49% ownership stake in, has received a processing license from Health Canada to produce a line of cannabis-infused chocolate bars, drink mixes and infused sugar.
“Receiving the processing license from Health Canada is a significant achievement and milestone,” said Choklat CEO Brad Churchill. “We look forward to introducing our cannabis-infused product line, products with a pure chocolatey taste with no aftertaste, across Canada leveraging the extensive B2B sales channels that CannMart Inc. has built. Our high-quality cannabis-infused bars and beverages will be based on our own chocolate recipe made from a special cocoa bean sourced from the jungles of South America.”
The license comes just in time for the full rollout of Cannabis 2.0 in Canada, which has been delayed since legalization in October 2019 due to Health Canada regulatory wait periods. The new sector is expected to be worth C$2.7 billion annually and add 3 million consumers to the Canadian cannabis market.
Namaste's CannMart to Submit 11 Unique Product SKUs
Now that the processing license is in place, CannMart will be submitting up to 11 unique product SKUs to Health Canada, which will include dark, white and milk chocolate bars, chocolate-based beverages, and infused sugar. All of the products will be formulated, developed and packaged to meet Health Canada's regulatory requirements and are expected to be available for sale on CannMart.com and at authorized provincial cannabis stores in March 2020.
Although there are several companies looking to release cannabis-infused edibles to the Canadian market this year, what sets Choklat apart from other chocolatiers is that it imports premium cocoa beans, then roasts, grinds and refines them on-site into chocolate that meets exacting taste specifications. By creating the chocolate, Choklat has complete control over the quality and taste of the final products which both companies believe will provide an advantage over competitors.
“Brad Churchill is a true pioneer when it comes to the actual production of chocolate, and he is now applying his extensive experience and passion to produce high-quality cannabis-infused chocolates,” said Namaste Technologies CEO Meni Morim, adding that Choklat is one of the first food processors in Canada to receive its processing license from Health Canada.
"We invested in Choklat not only to maximize the significant market opportunity for cannabis-infused edibles but also because we see Brad as a true craftsman in his trade and the quality of his products speak for themselves.”
Choklat already sells non-infused products through its online e-commerce site, as well as through a network of distributors across Canada. The company has experienced significant expansion to prepare for the legalization of edibles, with non-infused products now available in more than 150 retail outlets, including an increasing number of Sobeys and Safeway stores in Western Canada.
Investors reacted favorably to the news from Namaste, pushing the company's stock price up 8.7% to C$0.38 on the TSX Venture. Namaste stock was also up 10.23% on the OTC by the end of day, reaching a high of US$0.32 before closing at US$0.29.
Featured Image: Canva