Namaste Purchases VaporSeller Earn-Out
– Momentum Public Relations –
Press Releases: January 16th, 2017
Namaste Technologies Inc. (“Namaste”) (CSE:N)(CSE:N.CN)(FRANKFURT:M5BQ) is pleased to announce that it has entered into a binding amending agreement (the “Amending Agreement”) with Haze Industries, Inc. (“Haze”) for the purchase of the remaining earn-out obligation as set forth in the definitive asset purchase agreement (the “Asset Purchase Agreement”) announced on June 7, 2016. The Asset Purchase Agreement memorialized the terms and conditions whereby Namaste purchased the assets comprising VaporSeller, an e-commerce platform for the distribution of vaporizers and accessories that is focused on the US market and generated an unaudited revenue of US$3.4 million in 2015. The initial undiscounted value of the earn-out was approximately US$1.5 million. Namaste will settle the remaining earn-out obligation of approximately US$1.3 million by making an initial payment of US$285,000 and monthly payments of US$8,000 for 12-months. Namaste will also issue Haze the initial tranche of 1,700,000 common shares of the Company pursuant to the Asset Purchase Agreement. The total number of shares to be issued is 5,000,000, as previously announced. All common shares issued will be subject to a 4-month statutory hold period.
Management Commentary
Sean Dollinger, President and CEO of Namaste, comments: “The purchase of this remaining earn-out obligation provides Namaste additional cash flow to reinvest into our operations. The VaporSeller customer list of over 150,000 individuals and domains represent a strong foothold for Namaste in the US market and we now control these assets without any future obligations. The principals of Haze will continue to work with Namaste as we assume full operational management of the site.”
About Namaste Technologies Inc.
Namaste Technologies Inc. is an emerging leader in vaporizer and accessories space. Namaste has 26 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
Further information on the company and its products can be accessed through the links below: