Marijuana vertical Namaste Technologies is purchasing 49% of Choklat Inc.
Canada-based Namaste Technologies, a company that caters to the entirety of the cannabis industry, has announced that it is prepared to purchase 49% of Chocklat Inc., a Calgary-based chocolate manufacturer. The move is an indication of the growth of edibles infused with cannabidiol (CBD) and the connection between cannabis and chocolate in that market.
According to Meni Morim, Namaste’s interim CEO, “Choklat is a great acquisition for us with a vast offering of existing products that can be easily infused with THC or CBD and sold as edibles. Their small batch manufacturing model is a great fit within the new proposed regulations for edible cannabis products. This transaction provides the security of supply and manufacturing for our medicinal cannabis customers and provides capacity for the recreational market in the event proposed regulations are passed.”
Choklat offers a bean-to-bar chocolate manufacturing process and is the largest premium chocolate producer in Canada. It has 70 different retailers and a strong distribution network, and also offers its products online directly, as well as through a relationship with Sobeys.
Brad Churchill, the founder and CEO of Choklat, asserts, “This is a great combination where Namaste recognizes the value of e-commerce and direct to consumer sales and has the vision to help us grow by white-labeling products for all LP’s and distribution through CannMart. Choklat will aim to make products for CannMart and expand its target market to include the overall cannabis space. Almost two years ago I used my own prescription to personally research the concept of infusing chocolate and sugar with cannabis. As one of the only chocolate makers in Canada I had access to equipment and processes that other chocolatiers and confectioners don’t have. My research led me to discoveries which, when legal, will allow us to infuse both THC and CBD into chocolate and sugar in such a way that there is absolutely no discernible “weed” flavour or smell, and with dosage accuracy that is almost pharmaceutical grade.”
The cash-based acquisition is reportedly worth just over $1 million. As a result of the deal, Namaste has enjoyed slightly higher gains on the stock market, with its price increasing $0.10 over the past five days. In the past 24 hours, it has risen an additional 1.32%.