Among the many different cases of the “new year recovery rip”, Namaste Technologies Inc (OTCMKTS:NXTTF) is one of the most dramatic examples. The stock has doubled since the start of the year. It’s important to understand that the end-of-year dynamic is dominated by logic that strays from the most basic and elemental notions of investing, perverted by concepts such as tax-loss selling and the stigma of being caught owning a stock that has recently underperformed (for managers of other people’s money). But now that the new year is off and running, the logic is just about where one can find value. To add more color to this story – in light of that giant rip and that shift in narrative causality — NXTTF just announced that it has entered into a consulting agreement with Incite Capital Markets to provide investor relations and communication services, subject to TSX Venture Exchange approval.
According to the release, “The Company has selected the Incite Capital Markets to share Namaste’s compelling story to brokers, analysts, and portfolio managers globally. In consideration for their services, Incite will be paid $6,500 per month over a six-month term of engagement plus pre-approved out-of-pocket expenses, which amounts will be paid from general working capital. After six months, Incite’s engagement will then convert to a month to month basis subject to a 30-day termination notice, by either party. In addition, subject to Exchange approval, Namaste has granted Incite an option to acquire 150,000 common shares in the capital of the Company at a price of $1.65 per share that vest quarterly over twelve months and have a five-year term. Upon termination of the consulting agreements, any vested options will be canceled after 30 days, as is required by the Exchange.”
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.
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As noted above, NXTTF just announced that it has entered into a consulting agreement with Incite Capital Markets to provide investor relations and communication services, subject to TSX Venture Exchange approval. Recent action has seen 27% during the past week in terms of shareholder gains in the stock.
Furthermore, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 88% beyond its prior sustained average level.
According to the release, “The Company also wishes to announce that the Board of Directors previously approved a new employment agreement between Namaste and its CEO, Sean Dollinger effective as of January 1, 2019. The agreement reflects an update of Mr. Dollinger’s previous agreement with a subsidiary of Namaste and related permanent move to British Columbia. Details of Mr. Dollinger’s employment agreement include but are not limited to a base compensation of US$300,000 per year and the issuance of stock options to acquire a total of 500,000 common share stock options of the Company. Additional bonus provisions, for up 1.5x the annual salary amount, are included in the agreement based on successful milestones in strategic planning, growth, profitability and cash flow from operations. The options are exercisable at a price based on the closing price of Namaste’s shares on the date prior to the commencement date of the employment agreement. The options will vest in quarterly installments over the two-year term of the agreement. The options have a term of 5 years and are subject in all respects to the terms of Namaste’s stock option plan.”
Currently trading at a market capitalization of $336.29M, NXTTF has a store ($471K) of cash on the books, which must be weighed relative to 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.