Last week's newsletter introduced Namaste Technologies (OTC: NXTTF, CNSX: N.CN), the Vancouver, BC based company specializing in accessories and personal delivery systems for the medical and recreational cannabis market. Follow-up articles on Namaste highlighted the company's strategic decision to divest all of its US based assets and holding over concern about federal legislation that would legalize marijuana. In order to focus on financial strength and growth opportunities Namaste was focusing its efforts on the Canadian, European, and Oceania markets that have more favorable legislation in place.
This morning Namaste Technologies released information announcing record breaking sales for the month of November 2017 of CAD $2.2M, equating to a 69% month-on-month increase and a 146% year-on year increase. This represents Namaste’s highest month of revenue in the company’s history. In addition to achieving record breaking sales, the month of November has been transformational for Namaste. The Company’s exponential growth further validates that many initiatives which management has implemented over the past year have been overwhelmingly successful. Namaste has grown and consolidated the cannabis ancillary product industry to become the largest business-to-consumer retailer for vaporizers and smoking products globally. Namaste, through its wholly owned subsidiary, Cannmart Inc., and through the launch of NamasteMD Inc., believes that the Company is positioned to become a global leader for medical cannabis sales.
I'm sure a pun could be inserted here that part of the sales growth has been in direct correlation to the daily political news cycle, but since the company divested its US assets I guess that's a hard argument to make! Regardless, Namaste has certainly made business moves that will strengthen its distribution foundation going forward.
While Namaste is pleased with record breaking sales and organic revenue growth, it anticipates seeing further growth once CannMart’s sales license for medical cannabis distribution is obtained and through the launch of NamasteMD. Namaste’s management team believes that once these two initiatives are in place, the company will play a crucial role in the Canadian medical cannabis industry through online retail sales.
News of their sales numbers has had a positive effect on the stock price which opened up 9 points at $.75 USD share from the previous close of $.66 USD. More importantly, share volume is rocking, with 1.36 million shares currently being traded against an average daily volume of 600,000 shares.
Commenting on this announcement Sean Dollinger, President and CEO of Namaste states: “Namaste's goal from the outset was to create a platform that provides medicinal cannabis users with all the products and services required to make well-informed decisions. We believe we have achieved that by providing our users with access to highly trained professionals that can help guide them throughout the process and by offering superior products at competitive prices in the market.
Our continued growth in sales proves the e-commerce infrastructure we have created is highly successful and we fully intend on duplicating those successes with regards to medical cannabis products, which we believe represents an even greater opportunity. We believe we now have all the pieces in place to fully exploit the medical cannabis markets in Canada and abroad. In addition to seeing significant growth in sales, management is also pleased to report that the Company has sufficient cash resources to continue its strategic growth plan. Namaste’s management teaming is working towards reducing operating overhead in order to further enhance its positive working capital position.”
With a July 2018 date anticipated for the legalization of recreational marijuana throughout Canada, Namaste is well positioned to capitalize on both the medical and recreational markets. And while we always encourage investors to do their own due diligence, it appears that Namaste Technologies may be a cannabis related stock that can go sky high.