Namaste Technologies (OTCMKTS: NXTTF) has issued an update on its efforts to acquire UK-based AF Trading Ltd. which does business as Access Fulfillment.

Namaste Bahamas is expected to acquire all of the issued and outstanding shares of Access Fulfillment for $5 million under the terms of the previously announced terms, Namaste said in a statement.

Namaste, which provides technological solutions and services to medicinal cannabis businesses, is buying Access Fulfillment to operate an exclusive distribution center for CBD and cannabis products in the UK.

Namaste Agreement with Access Fulfillment Shareholders

Namaste has entered into a new letter of intent with the principal shareholders of Access Fulfillment.

Under the new terms, Namaste Bahamas will now acquire 100% of the issued and outstanding shares of CannMart Ltd., a subsidiary formed by the AF principals for purposes of holding the pharmaceutical distribution license previously filed by Access Fulfillment, which is essential to pursue an amendment to be granted a level 2 controlled substances license that will enable the sale and distribution of cannabis products in the UK.

Namaste Bahamas will acquire CannMart UK for C$1.50 million, comprised of C$500,000 in cash consideration and C$1 million in shares of common stock of Namaste.

In addition, Namaste will procure that CannMart UK enters into a consulting agreement with the AF principals to secure their services for a minimum of two years for aggregate consideration $2 million, comprised of cash consideration and Namaste common shares.

“As part of our 2019 strategy to re-prioritize our capital investments, we were able to successfully reduce the overall acquisition price of the Access Fulfillment transaction and acquire the net assets we see as adding the most value to Namaste,” Namaste CEO Sean Dollinger said in a statement. “The UK market represents a significant growth opportunity and this acquisition remains an integral part of this growth.”

The acquisition of CannMart UK and share issuances is subject to approval by the Toronto Venture Exchange.

Medicinal cannabis is legal in the UK, thanks a landmark decision on Nov. 1, 2018. Doctors can issue prescriptions for cannabis-based medicines when they agree that their patients could benefit from the treatment.