Namaste Technologies Provides Corporate Update

Rhea-AI Summary

Namaste Technologies Inc. (OTCMKTS: NXTTF) has announced a management change, appointing Slava Klems as the new interim CFO, effective October 31, 2020. Klems brings over ten years of experience in finance and has successfully managed various software implementation projects. Additionally, the company has settled a trademark dispute, agreeing to receive $250,000 in three payments over the next year while also assigning its trademarks to a defendant. The litigation related to the dispute is expected to be dismissed soon, allowing Namaste to refocus on its brand development and operations.

Positive

• Appointment of Slava Klems as interim CFO may enhance financial management with her extensive experience.
• Settlement of trademark dispute for $250,000 could provide immediate cash flow to the company.

Negative

• Trademark settlement involves assigning trademarks, which might limit brand ownership.

TORONTO, Sept. 28, 2020 /PRNewswire/ - Namaste Technologies Inc. ("Namaste" or the "Company") (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF), a leading online platform for cannabis products, accessories, and responsible education, is pleased to provide a corporate update with regards to a change in management and the settlement of an outstanding claim to the benefit of Company shareholders.

Namaste to Appoint New Interim Chief Financial Officer

The Company is pleased to announce the appointment of Slava Klems, CPA, CA, as interim chief financial officer as of October 31, 2020. Ms. Klems succeeds Annie Holmes who is leaving Namaste to pursue other opportunities, concluding her role as chief financial officer on October 30, 2020.

"I would like to welcome Ms. Klems to the position of interim chief financial officer for Namaste," said Meni Morim, CEO of Namaste Technologies. "She has an impressive background in corporate finance with experience in technology and platform integration and has shown an incredible business acumen since joining the Company. I look forward to working with Ms. Klems as we seek to drive Namaste forward. Additionally, I would like to thank Ms. Holmes for her work at Namaste and her assistance with the seamless transition to Ms Klems over the next few weeks."

Ms. Klems is an accomplished finance executive with over 10 years experience in senior finance management positions at AIMIA Inc. (Aeroplan) and Dominion Citrus Income Fund, plus experience across diverse industries including retail, distribution, manufacturing, pharmaceutical and automotive sectors. She joined Namaste in July 2020 and has proven herself as a driven and hardworking professional with a proven record in change management, process optimization and improved operational efficiencies. Ms. Klems has also successfully completed multiple ERP software implementation projects, including PeopleSoft and Workday to integrate Operations and Finance functions driving sustainable operational effectiveness. Ms. Klems holds a Master of Science and a Bachelor of Business Administration from York University and earned her Chartered Accountant designation with KPMG.

Trademark Dispute Settlement

Namaste today announced that it has reached a settlement in connection with a trademark dispute involving the use of the trademarks and corresponding registrations of trademarks for "Namaste", "NamasteVapes", "Namaste Technologies", "NamasteMD" and "NamasteCafe" (collectively, the "Trademarks"). Under the terms of the settlement, Namaste will receive a settlement payment in three tranches over the next 12 months from one of the defendants for an aggregate amount of $250,000 (the "Settlement Fee"). In addition, Namaste has agreed to assign the Trademarks to the same defendant, in exchange for a limited licence for the continued use by Namaste of the Trademarks over the next 12 months in Canada, and the transfer of the domain namastevapes.ca following payment of the final tranche of the Settlement Fee.

The litigation initiated by Namaste in connection with the trademark dispute is expected to be dismissed with the consent of all parties in the coming days. Meni Morim, CEO of the Company, commented, "We are pleased to put this matter behind us and continue writing our own history with a clean slate. Our focus continues to be on the development of our own in-house brands in the various lines of business we operate in such as CannMart and VendorLink. We are also very excited about the re-imagining of our corporate identity, creating a holistic brand positioning across all our assets. We look forward to sharing this with our shareholders, customers and partners in due course."

About Namaste Technologies Inc.
Headquartered in Toronto, ON, Namaste Technologies is a leading online platform for cannabis products, accessories, and responsible education. The Company's 'everything cannabis store', CannMart.com, provides medical customers with a diverse selection of hand-picked products from a multitude of federally-licensed cultivators, all on one convenient site. The Company also distributes licensed and in-house branded cannabis and cannabis derived products to recreational consumers in Canada through a number of provincial government control boards and retailing bodies and online in Saskatchewan. Namaste's global technology and continuous innovation address local needs in a burgeoning cannabis industry requiring smart solutions.

Information on the Company and its many products can be accessed through the links below:

NamasteTechnologies.com 
NamasteMD.com 
Cannmart.com

FORWARD-LOOKING INFORMATION – This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as "may", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, and are not limited to, statements regarding Namaste's expectations regarding the dismissal of the action described herein and the payments to be made by one of the defendants in connection with the settlement agreement. The forward-looking information contained herein is made as of the date of this press release and is based on assumptions management believed to be reasonable at the time such statements were made, including the Company's expectations relating to the dismissal of the action in the short term with the consent of all parties to such action and the ability of the defendant to make all payments in accordance with the settlement agreement and the full settlement of the said action. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: risks relating to the failure of certain parties to the action consenting to its settlement as contemplated herein and the defendant's ability to make the payments under the settlement agreement in accordance therewith, . Additional risk factors can also be found in the Company's current MD&A and annual information form, both of which have been filed under the Company's SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.

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SOURCE Namaste Technologies Inc.

FAQ

Who is the new interim CFO of Namaste Technologies?

Slava Klems has been appointed as the interim CFO of Namaste Technologies, effective October 31, 2020.

What is the settlement amount from the trademark dispute involving Namaste Technologies?

Namaste Technologies will receive $250,000 in three payments over the next 12 months as part of the trademark dispute settlement.

What are the implications of the trademark dispute settlement for Namaste Technologies?

Namaste will assign its trademarks but retain a limited license for their use, which may affect their brand ownership.

When will the litigation related to the trademark dispute be dismissed?

The litigation related to the trademark dispute is expected to be dismissed in the coming days.

What changes has Namaste Technologies made in management recently?

Namaste Technologies appointed Slava Klems as interim CFO, succeeding Annie Holmes who left for other opportunities.