Namaste Technologies says it’s on pace to raise $45 million in a bought-deal financing.
The firm, which operates an e-commerce platform for cannabis products with more than 30 websites in 20 countries, entered into a letter of engagement under which Eight Capital has agreed to purchase – as co-lead underwriter and joint bookrunner with Canaccord Genuity Corp. – 15 million units of Namaste at $3 per unit.
The firm says it plans to use the net proceeds to cover inventory, working capital and general corporate costs.
The deal is expected to close on or before Oct. 17 – the launch date of Canada’s recreational cannabis market.
Meanwhile, the firm also announced that its Toronto subsidiary, CannMart, has inked a medical cannabis supply agreement with Calgary, Alberta-based Rocky Mountain Marijuana.
The deal follows the recent announcement that fast-growing cannabis producer Tilray chose to end a supply agreement with Namaste after a highly publicized “pledge party” the firm held for stockholders who promised not to sell company shares for 90 days.
Tilray spokeswoman Chrissy Roebuck said the firm was “not aware of and did not approve Namaste’s recent promotional activities. We do not believe these types of activities will further legitimize medical cannabis with the medical community.”
A Namaste release called a report about the incident “misleading.”