Cannabis online platform company Namaste Technologies Inc. (OTCMKTS: NXTTF) reported that its net revenue for the year ending November 30, 2019 was $16.3 million, versus $23.8 million for the fifteen months ended November 30, 2018. The company said the change in revenue primarily reflected the sale/closure of non-core assets. The revaluation of assets and non-recurring costs associated with restructuring and legacy issues impacted the current year’s results by $32.7 million resulting in a net loss of $63.2 million compared to $41.6 million in the prior fiscal year.
“We made significant changes to the Company in 2019 which included key investments in new business segments, settlement of outstanding class actions, replacement of executive-level positions with top talent, and restructuring legacy businesses to reposition the business to compete over the long term,” said Meni Morim, CEO of Namaste. The company’s working capital position remains strong at $39.4 million with no debt obligations.
Class Action Suit Settled
The company said in a statement, “On March 16, 2020, with respect to the settlement of the Namaste Securities Class Action lawsuit and its approval by the Ontario Superior Court of Justice, the class action is formally closed as courts in Canada and the United States have approved the settlement.”
“The class action was a distraction and weight on our expenses,” added Mr. Morim. “We were able to settle the outstanding claims allowing us to refocus our efforts on changing the Company for the better in the long term.”
Mr. Faraaz Jamal was appointed to the position of Chief Operating Officer. Mr. Jamal has been with Namaste since May 2019. Mr. Jamal replaces Mr. David Giardino who is leaving the company to pursue other interests. Mr. Giardino has agreed to stay on with the Company until May to assist with operations through the transition period.
Share Compensation Drops
Share-based compensation, as part of total compensation, for the twelve months ended November 30, 2019, decreased by $19.9 million to $2.0 million compared to the fifteen months ended November 30, 2018. This reflects management’s efforts to realign and reduce its cost structure and demonstrate its increased focus on governance and related shareholder value.
Adjusted EBITDA for the twelve months ended November 30, 2019, was a loss of $23.1 million, compared to a loss of $17.9 million for the fifteen months ended November 30, 2018.
Namaste currently expects to file its Interim Filings for the first quarter ended February 29th on or by May 21, 2020.