Namaste Technologies Inc (OTCMKTS:NXTTF) has been consolidating in a lateral pattern over the past month. We generally see this as a positive technical development after a sharp rally. It demonstrates a strong chasing bid capable of providing stability even as a wave of profit-taking works its way through the stock.
To help matters along from here, the company just announced that Health Canadas Office of Medical Cannabis has provided the Company with a Confirmation of Readiness (COR) for a license under Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) for the Company’s wholly-owned subsidiary, Cannmart Inc. According to the release, “Cannmart is a late-stage applicant under the ACMPR for a medical cannabis sales-only license. Namaste plans to leverage its growing site traffic and existing consumer databases along with the Company’s revolutionary patient acquisition tool, NamasteMD.com, to become Canada’s leading e-commerce retailer for medical cannabis products.”
Namaste Technologies Inc (OTCMKTS:NXTTF) promulgates itself an emerging leader in vaporizer and accessories space. Namaste has 30 e-commerce retail stores in 20 countries, offers the largest range of brand name vaporizers products on the market and is actively manufacturing and launching multiple unique proprietary products for retail and wholesale distribution.
NXTTF is currently focused on expanding its product offering, acquisitions and strategic partnerships, and entering new markets globally.
According to company materials, “Namaste is the largest online retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through e-commerce sites in 26 countries and with 5 distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the UK, US, Canada and Germany and has opened new supply channels into emerging markets including Brazil, Mexico and Chile. Namaste, through its acquisition of Cannmart Inc., a Canadian based late-stage applicant for a medical cannabis distribution license (under the ACMPR Program) is pursuing a new revenue vertical in online retail of medical cannabis in the Canadian market. Namaste intends to leverage its existing database of Canadian medical cannabis consumers, along with its expertise in e-commerce to create an online marketplace for medical cannabis patients, offering a larger variety of product and a better user experience.”
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As noted above, the stock has been acting constructively and has recently put together some additional positive catalysts as it chases another round of new highs. The key move appears to be its strategy to a position as a leadership play among those vying for top-tier status as e-commerce retailers for medical cannabis products. Its progress in nailing down regulatory creds for Cannmart is a central feature in that process.
According to the company’s most recent release, “once Cannmarts ACMPR sales-only license is issued, the Company will focus on sourcing medical cannabis from a large variety of domestic and international producers in order to offer the largest variety of strains to its patients. Namastes goal is to create a simplified user experience to assist patients with a smooth onboarding process and access to the highest quality products available on the market.”
Traders will note 83% during the past month in terms of shareholder gains in the company. The situation may be worth watching. NXTTF is a stock with a past that has featured a litany of sudden rips to the upside. What’s more, the stock has registered increased average transaction volume recently, with the past month seeing approaching 280% above the average volume levels in play in this stock over the longer term.
Currently trading at a market capitalization of $626.5M, NXTTF has a store ($471K) of cash on the books, which must be weighed relative to virtually no total current liabilities. NXTTF is pulling in trailing 12-month revenues of $5.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 173.1%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $NXTTF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $NXTTF, either long or short, and we have not been compensated for this article.