If you look back at the chart for Namaste Technologies Inc (OTCMKTS:NXTTF) from November and December of last year, you will see one of the most remarkable moves in recent stock market history. Shares of the stock launched over 2,000% in around a month. That is not going to be a sustainable advance, and a correction ensued. Now, we are starting to see action that may indicate the end of that correction.
One of the big catalysts helping to characterize that narrative is the company’s announcement last week that it has signed a wholesale supply agreement with Manitoba-based ACMPR Licensed producer, Bonify Inc. According to the release, “Under the terms of the Supply Agreement, Namaste will purchase bulk cannabis products through the Company’s wholly-owned subsidiary, Cannmart Inc. Bonify operates a large-scale cultivation facility and will expand capacity to over 350,000 square-foot that will accommodate Namaste’s growth trajectory. Namaste will work with Bonify to develop private-label strains of cannabis for the medical and recreational markets as well as in offering the full selection of Bonify 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, recent action might be signaling an important inflection in the stock, pushing shares sharply back higher on strong volume. Traders will note 36% during the past month in terms of shareholder gains in the listing, a rally that has pushed up against longer standing distributive pressure in the stock.
In addition, the stock has benefitted from a jump in recent trading volume to the tune of greater than 210% beyond its prior sustained average level.
Sean Dollinger, President and CEO of Namaste, commented, “We’re very excited to be working with Bonify and their team. I was personally on-site at their facility in Winnipeg and was very impressed with their operations and the quality of their products. Bonify will be a strong supply partner for Namaste as they understand our vision and have significant capacity to support our growing patient network. We’re in a key position now where many of our efforts are coming together with our anticipated sales license at Cannmart. We’re looking forward to expanding on our relationship with Bonify in the future and are very excited to be seeing all of these pieces now coming together.”
Currently trading at a market capitalization of $407.4M, NXTTF has a bankroll ($471K) of cash on the books, which compares with 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%. This may be a very interesting story and we will look forward to updating it again soon. 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.