Namaste Announces Closing of $40.25 Million Bought Deal Financing

On Feb. 27, 2018, Namaste Technologies, Inc. (CSE:N) (FRA:M5BQ) (OTCMKTS:NXTTF) announced that it had closed a previously announced “bought deal” short form prospectus offering of units, including the exercise in full of the over-allotment option.  A bought deal is a securities offering in which an investment bank commits to buy the entire offering of a client company eliminating the issuing company’s financing risk and ensuring it will raise the intended amount of capital.

A total of 15,784,900 units of the company were sold at a price of $2.55 per unit for gross proceeds of $40,251,495. Each unit was comprised of one common share in the company and one stock option with a strike price of $3.15 and a 24 month period. The offering was completed by a syndicate of underwriters co-led by Eight Capital and Canaccord Genuity Corp. as co-lead underwriters and joint bookrunners and included Beacon Securities Limited.  Unlike traditional financing, the company will not have to repay the debt.  Instead, the investment bank will sell the “bought” units to recover their investment dollars and, potentially, reap the “interest” in the form of gains.  This type of arrangement is typically considered an above average risk for a bank illustrating the faith that the investment consortium places in the future prospects of Namaste Technologies, Inc.

The net proceeds of the offering are expected to be used by Namaste to fund inventory and supplies for the CannMart facility, to expand its customer and user base, for e-commerce upgrades and for working capital and general corporate purposes.

Namaste Technologies is a worldwide collective of industry experts focused on providing the best cannabis-related products & services available.

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