The value of the transaction is C$1.5 million ($1.12 million), Toronto-based Namaste said in a Wednesday press release. Aside from owning 49 percent of Choklat, Namaste will also appoint a member to the company's board of directors.
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Why It's Important
Choklat is one of a few makers of premium chocolate in Canada and the only bean-to-bar maker in Alberta. The company is distributing its products throughout Canada via its online store, recently entered into a supply agreement with Sobeys and has its product in 25 stores in Alberta.
Edibles remain illegal in Canada, but the government is working out the rules and regulations and plans to begin allowing sales in October. In the meantime, companies that want to enter the market are investing heavily in R&D to develop new products.
Choklat is also looking into infusing its chocolate with THC or CBD, with the company's founder and CEO Brad Churchill saying that he personally started research two years ago using his own prescription.
"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," he said in a statement.
Choklat is in the process of acquiring a Health Canada Federal Processing License and has hired Cannabis Consulting Inc. to assist with the process. The company plans to distribute its THC- and CBD-infused products through CannMart, Namaste Technologies' e-commerce platform for medical cannabis.
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