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Namaste Enters Binding Letter of Intent to Acquire Leading US Vaporizer E-Commerce Platform
(via Thenewswire.ca) Toronto, Ontario, Canada / TheNewswire / April 14, 2016 - Namaste...
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[{"type":"text","content":"Namaste Enters Binding Letter of Intent to Acquire Leading US Vaporizer E-Commerce Platform(via Thenewswire.ca)\n \n \nToronto, Ontario, Canada / TheNewswire / April 14, 2016 - Namaste Technologies Inc. (\"Namaste\" or the \"Company\") (CSE: N, OTC Pink: NXTTF, FSE: M5BQ) reports it has entered into a binding letter of intent (the \"Agreement\") with Haze Industries, Inc. (\"Haze\") for the purchase of certain assets of Haze representing its VaporSeller business (the \"Transaction\"). VaporSeller is an e-commerce platform for the retail distribution of vaporizers with a substantial presence in the United States. Estimated by management to be one of the largest e-commerce distributors of vaporizers in the United States, VaporSeller generated an unaudited revenue of US$3.4 million in 2015. The Transaction is accretive in terms of revenue and pre-tax earnings and approximately doubles the trailing twelve month revenue of Namaste. \n\n \n \nThis acquisition is consistent with Namaste's acquisition growth strategy and represents the Company's first-mover advantage as a consolidator of the fast growing and fragmented vaporizer industry. With an international presence established, this acquisition represents Namaste's strategic entry into the United States, the largest market for vaporizers and accessories globally, and provides Namaste with the scale and distribution channels to further secure commercial partnerships with leading product manufacturers. \n\n \n \nThe acquisition of VaporSeller also provides Namaste with a distribution list of over 150,000 retail purchasers of vaporizer products, which Namaste will utilize to distribute its existing product portfolio including the Gurutm, Namaste's proprietary vaporizer that works seamlessly with dry herbs, concentrates and liquids. \n\n \n \nTransaction Terms\n\n \n \nPursuant to the terms of the Agreement, Namaste will acquire the VaporSeller assets from Haze in exchange for cash, shares and an earn-out. Financial terms of the transaction are as follows:\n\n \n \n\n\n??US$500 thousand in cash upon closing of the Transaction; \n\n\n\n \n \n\n\n??5,000,000 shares of Namaste; \n\n\n\n \n \n\n\n??US$1.5 million of earn-out cash payments over 3-years, subject to certain performance criteria including operational controls on revenue and margins; and \n\n\n\n \n \n\n\n??US$89 thousand annual...