Namaste Closes Aquisition of VaporSeller
– Momentum Public Relations –
Press Release: June 7, 2016
Namaste Technologies Inc. (CSE:N) (OTC PINK:NXTTF) (FRANKFURT:M5BQ) reports that it has completed the acquisition of VaporSeller, an e-commerce portal for the sale of vaporizers and accessories that generated an unaudited revenue base of US$3.4 million in 2015. The Company has commenced integration activities to ensure an effective transition into the operations of Namaste. This includes software integration, inventory storage and controls, and the transition of customer service and support functions. The following sets forth the highlights of the acquisition:
- Increases annualized run rate revenue by approximately 142{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to US$5.8 million;
- Expands customer list by over 150,000 names;
- Adds new manufacturer relationships and products that will be sold though VaporSeller as well as Namaste’s retail and wholesale division; and
- Provides strategic entrance into the US market.
Further to the Company’s press release dated June 7, 2016 that outlines the definitive terms for the acquisition of VaporSeller, the Company has acquired all VaporSeller related website domains, a customer list of over 150,000 names, and related intellectual property, goodwill, and support services, in exchange for US$500,000 in cash, 5.0 million shares of Namaste over time and an earn-out of US$1.5 million, subject to revenue and margin controls.
In addition to closing the acquisition of VaporSeller, the Company has also closed on the minimum subscription requirement of its non-brokered private placement by issuing approximately 8.0 million units (“Units) of the Company for gross proceeds of approximately $960,000. Each Unit consists of one common share of the Company and one common share purchase warrant at an exercise price of $0.18 for a period of 2-years. All securities issued pursuant to the non-brokered private placement are subject to a four month plus one day hold period. The Company continues to work with investors to obtain additional subscriptions for its non-brokered private placement and will update investors in due course.
Mr. Sean Dollinger, President and CEO of Namaste, comments: “The closing of VaporSeller represents a very significant accomplishment for the Company. In less than 6-months from going public, we have more than doubled the size of Namaste’s revenue base, substantially expanded our customer base, entered the US market and added important new lines of products. I would like to personally thank all those involved in bringing this transaction together.”
About Namaste Technologies Inc.
Namaste Technologies Inc. is an emerging leader in vaporizer and accessories space. Namaste has over 30 e-commerce retail stores in 20 countries, offers the largest range of brand name vaporizers products on the market and is actively manufacturing and launching multiple unique proprietary products for retail and wholesale distribution. The Company is currently focused on expanding its product offering, acquisitions and strategic partnerships, and entering new markets globally.
On behalf of the Board of Directors
Sean Dollinger, Chief Executive Officer
Learn more by clicking here: www.namastetechnologies.com