Namaste enters edibles market by acquiring chocolate maker
Namaste Techonologies has entered the cannabis edibles market by acquiring 49 per cent of Calgary, Alta.-based chocolate manufacturer Choklat in a $1.5-million deal.
March 6, 2019 By Grow Opportunity Staff
The Toronto-based company which runs an e-commerce platform to connect medical cannabis patients with doctors, said it will be appointing a member to the board of Choklat as part of the acquisition.
“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,” said Meni Morim, interim CEO of Namaste Technologies Inc. “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 has existing sales through its online e-commerce site and through a network of distributors across Canada. It has also recently entered into a supply relationship with Sobeys and has product in 25 stores in Alberta with plans to expand to other parts of the country in the coming months.
“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,” said Brad Churchill, founder and CEO of Choklat Inc. “Choklat will aim to make products for CannMart and expand its target market to include the overall cannabis space.”
Choklat has hired industry experts Cannabis Consulting Inc. to assist with the procurement of a Health Canada Federal Processing License.
“Almost two years ago I used my own prescription to personally research the concept of infusing chocolate and sugar with cannabis,” Churchhill stated in a release. “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 a dosage accuracy that is almost pharmaceutical grade.”
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