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Namaste Technologies Stock Rises After Choklat Gets Heath Canada License

Shares of Namaste Technologies gained almost 9 percent on the TSX Venture Exchange in Canada after the cannabis e-commerce company said that Choklat Inc. has received a processing license from cannabis regulator Health Canada to produce a line of chocolate bars, drink mixes and infused sugar.

Namaste Technologies holds a 49 percent stake in Choklat, an Alberta-based craft chocolate manufacturer and chocolatier.

"Receiving the processing license from Health Canada is a significant achievement and milestone. We look forward to introducing our cannabis infused product line, products with a pure chocolatey taste with no aftertaste, across Canada leveraging the extensive B2B sales channels that CannMart Inc. has built," said Brad Churchill, CEO of Choklat.

According to Choklat, its cannabis infused bars and beverages will be based on its own chocolate recipe made from a special cocoa bean sourced from the jungles of South America.

Under the Cannabis Regulations, licensed processors must notify Health Canada of their intent to sell each cannabis product in Canada at least sixty calendar days before these cannabis products are made available for sale.

Namaste said its subsidiary CannMart will submit up to 11 unique product stock keeping units or SKUs to Health Canada for the new derivative product formats the company plans to offer for sale starting in March.

The company expects the new products to include dark, white and milk chocolate bars, chocolate-based beverages and infused sugar, which will meet the regulatory requirements set out by Health Canada.

These new product formats will be added to Namaste's e-commerce website CannMart.com, and also sold through provincial cannabis stores in authorized markets.

Choklat already sells non-infused products through both its online e-commerce site and a network of distributors across Canada.

The chocolate manufacturer has expanded significantly as it prepares for the legalization of edibles. The company has non-infused products available in over 150 retail outlets across Canada, including Safeway and Sobeys stores in Western Canada.

Choklat has also received its FDA number for the sale of non-infused chocolate bars in the U.S.

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