Namaste Technologies Inc Archives - Green Market Report

Debra BorchardtDebra BorchardtDecember 3, 2020
namaste2.png?fit=678%2C381&ssl=1

6min5040

Namaste Technologies Inc. (OTCMKTS: NXTTF ) is continuing in its efforts to win back investors. The company announced that it completed its acquisition of CannMart Labs, which has applied for a processing license for extraction. The company has also set up a whistleblower system within the company and appointed a seasoned investor relations person.

“We are pleased by activity this past cyber weekend to see our own CannMart and licensed brands shine alongside our valued partner brands which is a clear validation by consumers that our strategy is working,” said Meni Morim, CEO of Namaste. “Our average order value increased by 42% compared to 2019, demonstrating that our investment into our e-commerce platform is driving solid results. We are clearly focused on the execution of our strategy to position Namaste as a leading cannabis company and look forward to building on this positive momentum as we head into the upcoming holiday season.” The company outlined the following details for its sales:

Cyber Weekend Highlights:

  • Average order value increased by 42% compared to 2019 to $192
  • Online traffic increased 50% over the 2019 cyber weekend
  • 40% more giveaway entries than expected. These entries generated email newsletter sign-ups, increased social media visits and interactions
  • Best sales in Dried Flower: Sage n Sour and Sensi Star, both under the CannMart brand
  • Best sales in Cartridges: Disposable Cart Bundle and Pink Kush 0.5g Cart, both under the CannMart licensed Phyto Extractions brand
  • Best sales in Edibles: Strawberry Lemonade 1:1 Sour Gummies and Watermelon Hybrid Sour Gummies, both under the Wana brand supplied by Indiva
  • Best sales in Infused Oils: Treasure Island CBD Tincture under the CannMart brand and CBD Soft Gels under the brand and supplied by Indiva

 

Namaste confirmed the purchase price of $4,034,000 and earn-out payments in the form of Namaste common shares for CannMart Labs. The payments are on a sliding scale and upon the achievement of pre-determined revenue targets payable over 9 fiscal quarters at a maximum of approximately $1.94M per Earn-Out Payment, payable in Namaste common shares or, at Namaste’s option, in cash with a 5% discount. The company said that a first tranche of the Purchase Price of $1,608,500 has been paid to the Vendors by way of issuance of 7,123,560 Namaste common shares, issued at a deemed price of $0.2258, being the 7-day VWAP up to and including December 1, 2020.

Namaste History

At one point in 2019 Namaste came under a short-seller attack by Citron Research, which among other accusations, claimed that Sean Dollinger, who was then CEO of Namaste, lied to shareholders. Dollinger claimed to have sold Dollinger Enterprises US, a subsidiary of Namaste, to an arm’s length party, when in fact he had sold it to company insiders. Consequently, Namaste hired a special investigator to examine Citron’s claims, which ultimately led to Dollinger’s ousting and a $1.9 million bill for the investigation. Further compounding the scandal was news that its auditor PricewaterhouseCoopers, LLP resigned as well as claims of “irregular advertising” by the Brazilian government. As a result of losing its auditor, the company was also late in filing its financial statements. Morim was named interim CEO and then later took on the role officially.

Namaste said it has launched a Whistle-blower Program that allows employees to anonymously and confidentially report cases of workplace misconduct.  The program is supported by ClearView Connects, a Canadian-based reporting solution provided by an independent, third-party supplier.  The company also announced the appointment of Edward Miller as Vice President, Investor Relations effective November 16, 2020.  Mr. Miller brings more than 20 years of experience as a seasoned investor relations professional in the pharmaceutical and cannabis industry.  Subject to Exchange approval, Namaste has granted Mr. Miller options to acquire 170,000 common shares in the capital of the Company at a price of CAD$0.23 per share that vest quarterly over 3 years and have a four-year term.

 

 

 

 


Debra BorchardtDebra BorchardtJuly 24, 2020
namaste2.png?fit=678%2C381&ssl=1

5min6910

Namaste Technologies Inc.  (OTCMKTS: NXTTF) reported net revenues of $6.9 million for the second quarter ended May 31, 2020, which was a 73% increase over the same period last year, and a 31% sequential increase over the first quarter of 2020. The company trimmed its net losses to $4.8 million from last year’s $8.6 million in the same quarter. The company said that the improvement reflected CannMart’s introduction of new distribution channels, restructuring efforts in 2019, and resulting business improvements in 2020.

“The introduction of B2B distribution channels by CannMart has made a significant contribution to Namaste’s revenue stream and bottom line,” said Meni Morim, CEO of Namaste. “For the second consecutive quarter, we have seen considerable revenue growth and have just recorded the highest quarterly revenue for the Company to date. As stated in the first quarter, the strategic decisions we made in 2019 and early 2020 are beginning to be reflected in our results. Our efforts have resulted in significant growth for cannabis and cannabis products sales in Canada but there is more work for us to do. We have shown that we can grow our revenue and as we expand our product lines, improve operational efficiencies, and increase our gross margins in coming quarters to coincide with revenue growth.”

New Focus Paying Off

Revenue Shifting towards Cannabis (CNW Group/Namaste Technologies Inc.)

Namaste has struggled over several quarters as the company recovered from the resignation of its founder Sean Dollinger and a move to refocus its efforts on revenue. The company shifted towards a targeted approach to Canada and an increased contribution from CannMart. 48% of the second-quarter 2020 net revenues were derived from Canadian clients compared to 19% from the same period in 2019. This was a 338% increase in quarter over quarter revenue, reflecting the efforts made on growing the company’s market share within the Canadian market.

“As Canada is leading the way with respect to the rollout of regulations around a legal cannabis market, and with other countries paying close attention to this rollout, we set out to refine and perfect the scalability of our business model within this legal framework. The work and investment that we have made and will continue to make in Canada will provide a playbook for eventual expansion into other markets and verticals as regulations allow,” added Morim.

CannMart Adds To The Mix

CannMart Inc. expanded its product catalog and grew in both its business to business and business to consumer channels. CannMart’s revenue increased 82% on a sequential basis from Q1 to Q2 2020. Over 33% of second-quarter 2020 revenue was derived from cannabis and cannabis products compared to under 5% for the same period in 2019.

“The introduction of B2B distribution channels by CannMart has made a significant contribution to Namaste’s revenue stream and bottom line,” said Meni Morim, CEO of Namaste. “For the second consecutive quarter, we have seen considerable revenue growth and have just recorded the highest quarterly revenue for the Company to date. As stated in the first quarter, the strategic decisions we made in 2019 and early 2020 are beginning to be reflected in our results.”

Overall expenses decreased by $241,913 or 4% for the second quarter reflecting a decrease in share-based compensation and selling and marketing expenses offset by an increase in office and general costs


William SumnerWilliam SumnerMay 10, 2018
daily_hit004.png?fit=1200%2C500&ssl=1

4min10820

This is your Daily Hit of cannabis news for May 10, 2018:

On The Site

Opinion: Overwhelming Public Support For Marijuana Doesn’t Mean Legalization

In recent days, it seems the dam has broken and a string of positive developments have materialized for marijuana reformers—welcome news to the legal marijuana industry, the voters who supported it, and the local communities relying on it for new tax revenues. But given the structure of anticipated reforms—and the history of the implementation of prior reforms—the path ahead is unlikely to be smooth. Continue Reading…

In Other News

Aurora Cannabis Inc.

Following a less than stellar release of its quarterly financial statements, Aurora Cannabis Inc. (ACB) has announced that, following escrow release conditions, the company has acquired 2.3 million shares in Alcanna Inc. (CLIQ), formerly known as Liquor Stories NA, to the tune of $34.6 million. Aurora now holds 9.2 million shares in Alcanna, which represents approximately 25% ownership in the company (on a non-diluted basis). Alcanna will use the proceeds to establish a chain of adult use cannabis dispensaries, approximately 50 stores in total.

Liberty Health Sciences Inc.

Liberty Health Sciences Inc. announced that is has closed its short term prospectus offering on a bought deal basis, which includes the full exercise of the underwriters over-allotment option. In total, 23,55,875 units of the company were sold at $0.90 per unit, for approximately $23 million. A unit of the company consists of one common share and one common share purchase warrant, which entitles the holder to purchase one common share of the company until May 10, 2020 at a price of $1.10 per share. The company will use the proceeds from the offering to partially fund the purchase of a 75% ownership stake William Noyes Webster Foundation, Inc.

Namaste Technologies

Namaste Technologies Inc. (N), announced that, in accordance with its previously announced letter of intent, the company has signed a share purchase agreement to acquire 51% of the outstanding shares with 2624078 Ontario Inc., also known as Infinite Labz. As Infinite Labz seeks to become a Health Canada Licensed Producer and Dealer of medical cannabis oil, Namaste has agreed to finance the construction of a production facility for the company in Etobicoke, Ontario. Once construction and licensing is complete, Infiinte Labz will sell low cost medical cannabis oils and extracts through Namaste’s subsidiary, Cannmart Inc. “We are very pleased to have entered into a definitive agreement as we believe that the facility at Infinite Labz can be instrumental in allowing Namaste to participate in the recreational market,”stated Namaste President and CEO, Sean Dollinger.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 18 hours

If you didn’t catch our virtual event today – no worries. It was recorded and will be posted to our YouTube channel.

Back to Top

You have Successfully Subscribed!