Cannabis producer Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF) and global cannabis online retailer Namaste Technologies Inc. (CSE:N) (OTCMKTS:NXTTF) signed a Letter of Intent to develop an e-commerce platform to serve Emerald’s patients in Canada and to collaborate on opportunities worldwide. The companies will combine Namaste’s online technology, databases and traffic with Emerald’s pharmaceutical expertise to sell medical cannabis and products online.
Emerald closed at $7.600 today up 5%. Namaste closed down slightly to $2.28.
Namaste will offer its over 1000+ cannabis delivery devices to Emerald for sale to its patients. This e-commerce platform will connect to Namaste’s inventory management system and be available on desktop and mobile devices.
Emerald, a producer, will also enter supply agreement with Namaste’s subsidiary, Cannmart, a retail seller, to supply proprietary strains of medical cannabis to Cannmart. Cannmart will use online-retail to bring a large variety of medical cannabis products from many producers, both domestically and abroad.
“Emerald’s goal is to offer a broad selection through… digital and physical stores” said Avtar Dhillon, Executive Chairman of Emerald. He said they believe the deal will build incremental sales in Canada and internationally.
Sean Dollinger, President and CEO of Namaste said: “Our goal with Cannmart is to offer the largest selection of medical cannabis products to our patient base in Canada. We look forward to exploring similar opportunities with Emerald internationally.”
Emerald Health operates an indoor facility in Victoria, BC, and is building an 11-acre greenhouse on 32 acres in Metro Vancouver, with expansion potential to 22 acres to serve the anticipated legal Canadian adult-use cannabis market starting in 2018.
Emerald also owns 50% of Pure Sunfarms Inc., that is converting an existing 22-acre greenhouse in Delta, BC from growing tomatoes to growing cannabis.
Namaste is the largest online retailer of medical cannabis delivery systems globally. It distributes vaporizers and smoking accessories through e-commerce sites in 26 countries, with 5 distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the UK, Canada, and Germany. It has opened supply channels in Brazil, Mexico, and Chile.
Source Emerald press release