Cannmart announces Craft Cannabis Program with Micro Cultivator Supply Agreement
VANCOUVER, Nov. 19, 2018 /CNW/ – Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) is pleased to announce the launch of its Craft Cannabis Program with its preferred regulatory partners, Cannabis Compliance Inc. (“CCI”). The program is intended to provide support for craft cultivators who will apply for a micro-cultivator or micro-processor license under the Cannabis Act (“Micro Cultivators”). Namaste’s wholly-owned subsidiary, Cannmart Inc. (“Cannmart”) has initiated a program that offers both regulatory and financial support to Micro Cultivators in exchange for a Supply Agreement with the right of first refusal (“ROFR”) on 100% of their production. Cannmart will launch a Craft Cannabis section on its website that will offer patients access to a large variety of premium-quality cannabis products sourced from small-batch producers.
Each Micro Cultivator will be allowed to grow cannabis up to 200 square meters (2152 square feet) of total canopy space. Each Micro Processor will be allowed to process up to 600kg of cannabis from their facility. By securing Supply Agreements with Micro Cultivators, Cannmart will provide its patients with access to many strains which have not yet been available in the regulated market. Cannmart’s Craft Cannabis Program offers significant value for future Micro Cultivators not only by providing regulatory and financial support but also by providing a sales channel directly to consumers, with a healthy margin and national exposure. Craft growers across the country are now allowed to apply for a Micro Cultivator license under the new regulations of the Cannabis Act. As part of the Craft Cannabis Program, Micro Cultivators will have access to;
- Regulatory support through its preferred partners at CCI
- Supply Agreements with a 100% ROFR with prices based on fair-market value
- Reimbursement of up to $100,000 per Micro Cultivator for regulatory compliance costs
- Brand exposure through an e-commerce marketplace and sales across Canada
- Exposure to recreational and international markets
Further to the Company’s May 2018 news release, Namaste acquired 51% of the issued and outstanding shares of 2624078 Ontario Inc., formerly Infinite Labz (“Cannmart Labs”), which is being designed as a purpose-built oil extraction facility directly across the street from Cannmart. Micro Cultivators and Processors who join the Craft Cannabis Program will have access to produce various forms of cannabis oils and extracts for resale through both medical and recreational channels. Each Micro Cultivator and Processor that brings multiple strains to Cannmart’s platform will create product variants ranging from dry flower varieties and quantities to extracts, pre-rolls, cartridges, and edibles (subject to regulatory compliance and regulations from Health Canada), giving Cannmart the ability to expand its product offering rapidly.
The Company is also pleased to note that Cannmart has begun the process of its application for Good Manufacturing Practices (“GMP”) certification, with the intention of facilitating the export of medical cannabis products to the UK and EU in early 2019. Cannmart’s product offering, combined with GMP certification and its existing platform in the UK will offer licensed producers and Micro Cultivators with potential access not only to domestic but also international markets. Namaste is focused on the expansion of medical cannabis sales in international markets where it currently maintains a strong presence, like the UK and Australia. GMP certification is a requirement for export of medical cannabis products to the EU and for the UK.
The Company recently co-hosted a Craft Cannabis conference with Cannabis Compliance Inc. in Nelson, BC and is pleased to report that Cannmart has signed its first Micro Cultivator/Processor Supply Agreement. The Company anticipates signing up to 10 agreements with craft growers in the Kootenay region over the next several weeks. With each Micro Cultivator being allowed to produce up to 600kg of product, 10 agreements would represent the potential for up to 6000kg of premium cannabis for Cannmart per year and a potential revenue stream of up $72,000,000 per year, based on a retail price of $12 per gram for premium product. The Company anticipates securing a minimum of 10 additional Supply Agreements at its upcoming event in Victoria, BC. Cannmart will be heavily focused on securing new Supply Agreements with Micro Cultivators, starting in British Columbia and across Canada over the next several months.
For more information on the Craft Cannabis Program please email Info@NamasteTechnologies.com