Namaste Technologies (TSXV:N; OTCMKTS:NXTTF) signed a share purchase agreement to acquire 51 percent of the outstanding shares of Infinite Labz and has agreed to finance the construction of its facility in Etobicoke, Ontario.
As quoted in the press release:
Infinite Labz intends to submit an application to become a Health Canada Licensed Producer (“LP”) of medical cannabis oil, with the intention of resale to both the medical and recreational markets. Infinite Labz also intends to apply to become a Licensed Dealer (“LD”) of medical cannabis in accordance with Health Canada regulations, allowing the company to initiate research and development, import cannabis, perform analytical testing, and conduct clinical studies with medical cannabis, dried flower, and oil.
Namaste anticipates an accelerated demand for cannabis oils and believes that a dedicated facility designed for the sole purpose of producing oils and extracts can provide the Company with a strong supply of high-margin oil products. Following completion of construction and licensing, the facility will allow Infinite Labz to produce oils and extracts at a low cost for sale to registered patients of Namaste’s wholly owned subsidiary, Cannmart Inc. (“Cannmart”), resulting in increased margins for Namaste. Inifinite Labz also plans to produce and sell oils/extracts directly to other LP’s, and participate in the recreational market by selling its products to licensed provincial distributors. The Company also intends to use its hardware experience to produce specialized pod-based vaporization systems for use with oil formulations. Namaste has established a strong brand through its existing retail channels and intends on building on that unique brand in the Cannabis oil sector through Infinite Labz.