In our last piece, we cheered that the blitz was continuing for Namaste Technologies Inc (OTCMKTS:NXTTF). The idea there was both the international move and the continued evolution toward the retail market, and the repurposing the company’s app and outlet infrastructure to that end. All of it has seemed to go quite smoothly and just in time, which is why we have been fans of the name over the past 2 months. To further build on that narrative, the company just announced that its wholly-owned subsidiary, Cannmart Inc., has received confirmation from Health Canada that Cannmart will be allowed to buy pre-packaged, labeled, and tested cannabis products.
According to the release, “This development is very significant for Cannmart in that it will eliminate the need for buying in bulk, testing, and packaging, which will significantly reduce overhead costs for Cannmart and thus increase gross profit margins. By allowing Cannmart to purchase pre-packaged medical cannabis products, the Company can remain focused on its areas of expertise in e-commerce and technology, and enable the Company to further expand on the products and services that can be provided through Cannmart. The update from Health Canada is extremely positive for the Company and will further support its strategy in establishing Cannmart as Canada’s leading medical cannabis online marketplace.”
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 Technologies is Your Everything Cannabis Store. Namaste operates the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands. Namaste’s product offering through its subsidiaries includes vaporizers, glassware, accessories, CBD products, and the company will soon be selling medical cannabis in the Canadian market, subject to approval by Health Canada. Namaste has developed and acquired innovative technology platforms including NamasteMD.com, Canada’s first Health Canada compliant telemedicine application, and in May 2018 the Company acquired a leading e-commerce AI and Machine Learning Company, Findify AB. Findify uses artificial intelligence algorithms to optimize and personalize a consumer’s on-site buying experience. Namaste is focused on leveraging its cutting-edge technology to enhance the user experience throughout its platforms. Namaste will continue to develop and acquire innovative technologies which will provide value to the Company and to its shareholders as well as to the broader cannabis market.”
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As noted above, the stock has been performing as the company continues to evolve into a new niche. In all, the chart shows 110% during the past month in terms of shareholder gains in the stock. Furthermore, the name has witnessed a pop in interest, as transaction volume levels have recently pushed exceeding 480% above the average volume levels in play in this stock over the longer term.
Sean Dollinger, President and CEO of Namaste comments: “This is amazing news for Cannmart which will completely eliminate the need to buy bulk cannabis, test, unpack, weight and repack before it hits the shelves. We believe that this will allow us to maximize our output and profitability through Cannmart. We are thrilled to have received this update from Health Canada which only supports our business model and strategy in developing Canada’s most innovative e-commerce platform to offer a curated selection medical cannabis products and the best user experience possible.”
At this time, carrying a capital value in the market of $670.65M, NXTTF has a chunk ($471K) of cash on the books, which is balanced by about $1.1M in total current liabilities. One should also note that debt has been growing over recent quarters. 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 is an exciting story, and we look forward to a follow-up chapter as events transpire. 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.