Namaste Technologies Acquires 10% of Israeli-based Cannbit Ltd.
On Monday, Namaste Technologies Inc. (TSX:N) announced that it would be acquiring 10% of the Israeli medical cannabis company Cannbit Ltd.
Namaste sent a letter of intent to acquire Cannbit on January 18, 2018 and will now be purchasing the cannabis producer for NIS 2.5 million, or approximately CAD $908,000, in a combination of cash and shares.
Cannbit will also be merging with another company on the Tel Aviv stock exchange where Cannbit will have 85% ownership over the newly combined company.
Although it is still subject to approval from Health Canada, Namaste has created a supply agreement with Cannbit where Cannbit will export cannabis to the Canadian market.
This will also help to increase Cannbit’s international footprint.
Co-founder and CEO of Cannbit, Yaron Razon has said that the company “[intends] to work closely with Namaste to promote joint business activities in Israel and in Canada including the development of unique products and technologies."
Sean Dollinger, the President and CEO of Namaste, believes that “as a pioneer of cannabis research and development Israel will play an important role in the overall cannabis market and this transaction puts the Company in a great position moving forward.”
Dollinger has also stated that he feels “very optimistic about the rate at which [Namaste] have been able to close on many key initiatives and fully expect to continue accelerating [the company’s] efforts to expand [their] product offering through [their] platform.”
Shares of Namaste went down 2.72% on Monday and the company closed at a value of $1.43 and was able to reach a high of $1.47 and a low of $1.42.
On Friday, Namaste closed at a share value of $1.47, which was also the company’s high value of the day, and reached a low of $1.44.
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