- Namaste Technologies (TSXV:N) has signed a licensing agreement, via its subsidiary CannMart, with Ignite International Brands (CSE:BILZ)
- The agreement will enable CannMart to use specific Ignite-branded trademarks on cannabis products
- CannMart will oversee the sale and distribution of the Ignite products, as well as procurement, processing and packaging
- Ignite, on the other hand, will be responsible for marketing the products in Canada
- Shares in Namaste Technologies are currently up 13.24 per cent to C$0.38, with a market cap of C$115.46 million
- Ignite International Brands’ shares are also up 8.82 per cent to C$1.11, with a market cap of C$6.13 million
Namaste Technologies (TSXV:N) has signed a licensing agreement with Ignite International Brands (CSE:BILZ).
The agreement was made through Namaste’s subsidiary, CannMart, which has been licensed to use specific Ignite-branded trademarks on cannabis products. In return, Ignite will receive royalty payments.
Under the terms of the agreement, CannMart will work collaboratively with Ignite’s quality control and product development teams. The company will help to source suitable ingredients from Canadian cannabis producers.
CannMart will also assume all procurement, processing, packaging, sale and distribution functions at its Canada Health-licensed facility.
Ignite, on the other hand, will leverage its considerable marketing channels in promoting the products to the Canadian market.
Curtis Heffernan, President of Ignite, said the partnership will greatly benefit both companies.
“CannMart delivers a unique value-added proposition to brands.
“The agreement with CannMart will allow Ignite to remain laser-focused on expanding brand awareness to maximize its reach to Canadian consumers,” he said.
With the Cannabis 2.0 phase now in full swing, the margin for product offerings have been greatly increasing.
Edibles and other ingestible products have now reached legal status, and cannabis companies are scrambling to find an edge in what is already a large and complicated market.
Meni Morim, CEO of Namaste Technologies, is aware of the growing pressure to be competitive.
“CannMart continues to demonstrate its ability to attract leading brands like Ignite, to deliver recognizable quality products to consumers.
“Namaste believes Ignite is well known among our current customer base and CannMart intends to leverage Ignite’s brand recognition to drive sales throughout its network of government partners and retailers,” he said.
Shares in Namaste Technologies are currently up 13.24 per cent to C$0.38, with a market cap of C$115.46 million at 4:18 pm EST.
Ignite International Brands’ shares are also up 8.82 per cent to C$1.11, with a market cap of C$6.13 million.