Namaste Technologies Inc. (TSXV:N) has permission from the Exchange to repurchase for cancellation up to 10% of its public float
SmallCapPower | July 19, 2018: Namaste Technologies Inc. (TSXV:N) Monday announced that it has received approval from the TSX Venture (TSXV) Exchange for a Normal Course Issuer Bid (NCIB) to repurchase for cancellation up to 25,308,136 common shares of its own capital through the facilities of the exchange. Commencing on July 18, 2018, the NCIB will be for a 12-month duration and will culminate on July 17, 2019. If executed, this stock buyback would likely be a Canadian cannabis sector first.
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The Corporation plans to purchase for cancellation via the exchange at market price of the Corporation’s common shares at the time of purchase, up to 25,308,136 common shares which comprise 8.9% of the Company’s issued and outstanding shares and 10% of the Company’s public float.
On the Company’s behalf, the NCIB will be conducted by Canaccord Genuity Inc. The Corporation will decide the actual number of common shares to be purchased as well as the timing of such purchases as per the requirements of the exchange. The Corporation is going to enter pre-defined plan with Cannacord for purchasing of common shares by the Corporation during internal trading blackout periods when it won’t be active in the market.
This move by Namaste is a curious one seeing that the Company reported a loss of more than $3 million for its February 2018 quarter.
Namaste Technologies President and CEO Sean Dollinger remarked, “We believe that the present trading price of the Common Shares of the Namaste is at a significant discount to what we believe is reflective of the Corporation’s value as a whole. Subsequently, management is of the view that it is in the best interests of all shareholders of the Corporation that, from time to time, Common Shares be acquired by the Corporation and returned to the treasury, thus increasing the Corporation’s value per Common Share for remaining shareholders.”
In other news, Namaste Technologies Wednesday said it has signed an e-commerce and technology services agreement with BlissCo Cannabis Corp Inc. (CSE:BLIS), whereby Namaste will provide services including access to Namaste’s technology platforms, software integrations and e-commerce services such as the one powered by Namaste’s e-commerce artificial intelligence (AI) platform, Findify.io.
Namaste Technologies trades at a market capitalization of $412 million with price-to-book multiple of 6.03x.
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