Namaste signs deal with Colombian LP Clever Leaves Namaste Technologies Inc. has signed a medical cannabis product acquisition agreement under the company's wholly owned subsidiary, Cannmart Inc., with Clever Leaves, a vertically integrated, licensed producer of medical cannabis in Colombia, with the assistance of Northern Swan Holdings Inc., financial sponsor of Clever Leaves. Clever Leaves has recently broken ground on a 15-plus-hectare good agricultural collection practices (GACP) compliant cultivation facility and good manufacturing practices (GMP) level-2 extraction facility, leveraging high-grade technology and practices from the international pharmaceutical and cannabis industries. By 2019, development of a second Colombian cultivation site will significantly expand its cultivation capacity to meet the growing demand from domestic and international patients. This supply agreement represents further progress in Namaste securing medical cannabis supply agreements with global partners. Namaste, subject to approval by Health Canada, will continue to pursue importation of high-quality medical cannabis, sourced from internationally licensed producers.
Key terms of the supply agreement
- Cannmart will submit purchase orders to Clever Leaves for medical cannabis.
- Cannmart will import medical cannabis from Clever Leaves, subject to approval by Health Canada.
- Cannmart will be compliant with the branding and pricing strategy developed by Clever Leaves.
- Cannmart will be responsible for shipping and importation costs of the product.
- Clever Leaves will provide Cannmart with lab test reports for each purchase in advance and in accordance with Cannmart's requirements under Canadian regulations.
- The packaging of products will bear the Clever Leaves brand logo.
The supply agreement with Clever Leaves further supports Namaste's strategy of providing its Canadian patients with access to high-quality imported medical cannabis. The company believes that the production expertise and quality control methods of Clever Leaves will meet the highest standard of requirements necessary for importation into the Canadian market. Namaste will continue to cultivate international relationships under the guidelines set forth by Health Canada, in an attempt to position Cannmart as one of the most diverse global e-commerce platforms.
Management commentary
Andres Fajardo, chairman of Clever Leaves comments: "We are thrilled to enter into a partnership with Namaste and to help carry out Colombia's vision of becoming a leading supplier of medicinal cannabis to the world. We believe this agreement is a validation of the professionalism of our operation, and by forging long-term win-win partnerships with best in class groups around the world, such as Namaste, we are sure to achieve this and more."
Sean Dollinger, president and chief executive officer of Namaste comments: "We're very pleased to be announcing this supply agreement with Clever Leaves. In addition to sourcing cannabis products from domestic producers, our goal is to offer Canadian patients with the most diverse offering of medical cannabis products from high-quality international cultivators. The Clever Leaves management team has proven themselves as experts in the cultivation of medical cannabis, and we are extremely excited at the potential of offering our patients access to a variety of products, which we believe will greatly benefit our patients. We remain focused on implementing this strategy, and we look forward to the launch of Cannmart. We further anticipate the signing of additional supply agreements and partnerships with industry-leading licensed producers, and we feel confident in the direction we are headed. It has been extremely rewarding to see the willingness of top producers and industry leaders to collaborate with Namaste in a joint effort to revolutionize the cannabis industry. Namaste's management team looks forward to moving forward and working with Clever Leaves team to bring value to its patients."
About Namaste Technologies Inc.
Namaste is the largest on-line retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through 24 e-commerce sites in 20 countries and with distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the United Kingdom, Canada and Germany, and has opened new supply channels into emerging markets including Brazil, Mexico and Chile. Namaste, through its acquisition of Cannmart, a Canada-based late-stage applicant for a medical cannabis sales (under the ACMPR (Access to Cannabis for Medical Purposes Regulations)), is pursuing a new revenue vertical in on-line retail of medical cannabis in the Canadian market.
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As an ICC investor this deal makes no sense to me. Namaste chose Clever Leaves over Canadian-owned ICC. Clever leaves is not even two years old and is at least one calendar year behind ICC in terms of infrastructure and production. This company hasn't even harvested a single bud or sold a single gram.
Thoughts?