Namaste Technologies Closes $23 Million Bought Deal Public Offering
TORONTO, Jan. 19, 2021 /CNW/ – Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF), a leading platform for cannabis products, accessories, and education, is pleased to announce that it has closed its previously announced “bought deal” public offering (the “Offering”) for total gross proceeds of $23,023,000. The Company sold 65,780,000 units of the Company (the “Units”) at a price of C$0.35 per Unit under the Offering, including 8,580,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.
Each Unit consists of one common share (a “Common Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one Common Share at an exercise price per Common Share of C$0.47 until January 19, 2024. The TSX Venture Exchange (the “Exchange”) has conditionally accepted the Warrants for listing and the Warrants are expected to be posted for trading on the Exchange later in the week under the ticker symbol N.WT.B.
Canaccord Genuity Corp., as lead underwriter, and Haywood Securities Inc., acted as underwriters for the Offering.
The underwriters received a cash underwriting fee equal to 6.0% of the aggregate gross proceeds of the Offering and were issued compensation options equal to 6.0% of the aggregate number of Units sold under the Offering (the “Compensation Options”). Each Compensation Option is exercisable until January 19, 2023 to acquire one common share of the Company at an exercise price of $0.35.
In connection with the Offering, the Company filed a prospectus supplement dated January 15, 2021 (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated September 16, 2020 (the “Base Shelf Prospectus”) with the securities commissions or similar securities regulatory authorities in each of the provinces of Canada (other than Quebec).
The Company expects to use the net proceeds from the Offering for the further development and expansion of its business and for working capital and general corporate purposes, as further described in the Prospectus Supplement.
Copies of the Prospectus Supplement and accompanying Base Shelf Prospectus may be obtained under the Company’s profile on SEDAR at www.sedar.com and from Canaccord Genuity Corp., 161 Bay Street, Suite 3000, Toronto, ON M5J 2S1.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities comprising the Units have not been and nor will they be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the securities comprising the Units may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Namaste in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Namaste Technologies Inc.
Headquartered in Toronto, Canada, Namaste Technologies is a leading online platform for cannabis products, accessories, and responsible education. The Company’s ‘everything cannabis store’, CannMart.com, provides medical customers with a diverse selection of hand-picked products from a multitude of federally licensed cultivators, all on one convenient site. The Company also distributes licensed and in-house branded cannabis and cannabis derived products to recreational consumers in Canada through a number of provincial government control boards and retailing bodies and facilitates licensed cannabis retailer sales online in Saskatchewan. Namaste’s global technology and continuous innovation address local needs in a burgeoning cannabis industry requiring smart solutions.
Information on the Company and its many products can be accessed through the links below:
