Namaste Technologies Archives - Green Market Report

Debra BorchardtMarch 25, 2022
Lifeist.png?fit=291%2C291&ssl=1

4min1410

 Lifeist Wellness Inc. (TSXV: LFST) (OTCMKTS: NXTTF) (formerly known as Namaste Technologies)  reported its financial results for the fourth quarter and the year ending November 30, 2021. Net revenue decreased 11% to $6.4 million in the quarter versus $7.2 million for the same time period in 2020. The net loss was $4.0 million in the quarter versus $6.4 million in the fourth quarter of 2020. The improvement was attributed to improved gross margins and a gain of the fair value of a convertible note receivable.

Lifeist said the decrease in revenue was driven by declines in hardware sales in Europe through Lifeist Bahamas and declines in medical cannabis sales in Canada through CannMart, all such operations having effectively ceased in 2022. The company said this was partially offset by the continued growth in sales of Canadian recreational cannabis, Australian Vapes hardware revenue which increased 15%, and Findify SaaS revenue which increased 16%. Excluding Lifeist Bahamas hardware and CannMart medical cannabis, net revenue increased by 4%. All financial figures are in Canadian dollars unless otherwise indicated.

Full Year Results

Net revenue decreased 9% to $22.8 million for the full year ending November 30, 2021, versus $25.1 million for the year ending November 30, 2020. The decrease was driven by declines in hardware sales in Europe through Lifeist Bahamas and declines in medical cannabis sales in Canada through CannMart, all such operations having effectively ceased in 2022. This was partially offset by the continued growth in FY2021 of Canadian recreational cannabis revenue which increased 25%, Findify SaaS revenue which increased 16%, and Australian Vapes hardware revenue which increased 10%, in each case in comparison to FY2020. Excluding Lifeist Bahamas hardware and medical cannabis, net revenue increased 19% compared to FY 2020. the company said that the working capital position of $16.4 million at year-end remains strong.

“The past year was one of transitioning to wellness, sharpening our strategic focus, and investing to drive sustainable growth,” said Meni Morim, CEO of Lifeist. “As a portfolio of wellness companies, Lifeist is growing its B2B recreational cannabis distribution and manufacturing business, and expanding its new nutraceutical division. We believe these opportunities provide the most direct and viable path to value creation, enabling Lifeist to leverage its capabilities and expertise to differentiate itself in the growing wellness economy.”
Loan Repaid
After the quarter ended, Fire & Flower Holdings Corp. entered into a definitive agreement to acquire Pineapple Express Delivery Inc., a holder of the company’s convertible loan payable. On January 25, 2022, Fire & Flower completed the acquisition of PED, and, as part of the purchase, Fire & Flower assumed and repaid a $2,040,077 convertible loan receivable owed to the company by PED. In addition, the company received 75,100 common shares in Fire & Flower on completion of the acquisition, with a further 258,478 common shares in Fire & Flower having been placed into escrow pending completion of customary working capital adjustments and subject to achievement of certain performance-based milestones in its fiscal 2022 year.

Added Mr. Morim, “With Mikra’s first nutraceuticals product, CELLF, a novel cellular therapeutic compound targeting systemic fatigue, already in pre-orders and our distribution, logistics and CannMart Labs businesses driving growth in our recreational B2B cannabis business, we believe we have the platform for sustainable growth.”


Debra BorchardtMarch 30, 2021
Namaste_Technologies_Inc__Namaste_Technologies_Provides_Corporat.jpg?fit=960%2C503&ssl=1

3min670

Namaste Technologies Inc.  (OTCMKTS: NXTTF) reported its financial results for the year ended November 30, 2020. Gross revenue for the fourth quarter ended November 30, 2020, was $8.0 million versus $4.0 million in the same period last year. Namaste trimmed its net losses in the fourth quarter to $6.4 million versus a net loss of $29.7 million for the fourth quarter in 2019. The company attributed the  $3.3 million improvements in net revenue for the fourth quarter to the increased revenues from the sale of cannabis products.

For the full fiscal year, the company had revenue of $27.1 million versus $16.4 million in the 2019 fiscal year, representing an increase of  65% from the prior year, respectively. The net loss for the fiscal year was $26.4 million versus a net loss of $63.2 million in the 2019 fiscal year. The company said in a statement that it is committed to maintaining these positive trends.

“We are pleased with the progress made by the team to achieve the highest recorded quarterly revenue for the company to date,” said Meni Morim, CEO of Namaste. “We achieved significant year-over-year growth of revenue as cannabis sales through CannMart’s distribution channels made an important contribution to the revenue stream. The Company is in a strong financial position today made possible from the considerable work undertaken in 2020 to lay the foundation for long term growth as Namaste continues its evolution to be the world’s foremost personalized wellness marketplace.”

The company’s working capital position remains strong at $16.5 million as of November 30, 2020. Since the year-end, Namaste successfully closed a $23 million bought deal offering.

Namaste also noted in a statement that it has launched CannMart.com into the USA offering Americans hemp-derived CBD and smoking accessories. It announced the addition of leading licensed producers to the CannMart.com platform: Auxly Cannabis Group, Hexo Corp and The Green Organic Dutchman Holdings (TGOD). Plus, it received a standard processing license from Health Canada for CannMart Labs Inc., its state-of-the-art BHO extraction facility.


Debra BorchardtJune 10, 2020
namaste2.png?fit=678%2C381&ssl=1

5min890

Troubled cannabis company Namaste Technologies Inc. (OTCMKTS: NXTTF) continues its hard journey on the road to recovery as the company reported a 16% increase in net revenues to $5.3 million for the first quarter ending February 29, 2020. Namaste said it was its highest quarterly revenue in two years.

The company also reported that its net losses had been trimmed to $7.4 million from last year’s $10.3 million for the same time period. Namaste said that the improvement reflected the restructuring efforts in 2019 and general business improvements in 2020.

“The changes in strategy and corporate structure made during 2019 are starting to reflect a positive impact in our financial results,” said Meni Morim, CEO of Namaste. “Namaste’s revenues jumped this quarter to the highest level since the first quarter of 2018 with a significant contribution from CannMart, an impressive feat taking into account some exits from non-core businesses during 2019. We are gaining traction in the B2B segment with one early customer, with whom we passed the Proof of Concept stage, driving the majority of CannMart’s revenue growth. These are initial, yet strong signals of traction, as CannMart generated in this quarter alone, 164% of the revenue generated by CannMart in the entire year of 2019. CannMart is seeing significant growth in its operations as we enter new markets with new and well-known brands and a growing number of distribution channels.”

CannMart

The company’s ‘everything cannabis store’, CannMart.com, provides customers with a diverse selection of hand-picked products from a multitude of federally-licensed cultivators, all on one site. CannMart’s net segment revenue increased by approximately 798% to $1.3 million, excluding excise tax, over the comparable period in 2019. On a sequential basis, CannMart’s revenue increased 258% from Q4 2019 to Q1 2020.

The site also signed a new supply agreement with Alberta Gaming, Liquor & Cannabis (AGLC), representing the fifth provincial government customer for Namaste. According to the AGLC there are 465 retail locations in the province, more licensed retailers than in any other province. The company said that CannMart continues to increase the number and variety of products carried on the CannMart website and available through its B2B channels such as

    • Premium craft cannabis brand Kief, a pure craft cannabis company in which Namaste holds a minority position and certain product purchasing rights, and
    • Award winning Phyto Extractions, an established legacy brand in the Canadian marketplace offering unique products such as cannabis vaporizing pen cartridges and batteries; cannabis capsules; and cannabis tincture bottles and jars.

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

Morim added, “The Cannabis 2.0 market is still in its infancy.  However, we expect this market to gain momentum as new and innovative products and brands are introduced. This market features higher gross margins and a larger addressable customer base than leaf-based products and is an important addition to our product offerings. Major brands understand the value that we offer and trust us to represent them.”

Namaste has worked hard to overcome its struggles of 2019. The company parted ways with its founder Sean Dollinger and then embarked on a path that included selling non-core assets, investing 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.

 

 


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

3min740

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.”

New COO

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.


William SumnerJuly 25, 2019
daily_hit004.png?fit=1200%2C500&ssl=1

5min770

It’s time for your Daily Hit of cannabis financial news for July 25, 2019.

On the Site

Leafwire

Leafwire, the largest cannabis business network worldwide, announced today the closing of a Seed Round for $1 Million. Since its launch, Leafwire has grown rapidly, often with over 1,000 members visiting the platform daily. Leafwire currently boasts more than 16,000 members currently and is projected to surpass 25,000 members by the end of the year.

Executive Spotlight: Jessica Velazquez, Managing Partner of Indiva Advisors LLP

Jessica Velazquez is a Certified Public Accountant (CPA) licensed in Illinois & Nevada and Partner of Indiva Advisors LLP, a full-service accounting firm for cannabis and hemp businesses.

Heavenly Rx

The hemp-CBD company Heavenly Rx Ltd. announced today that it has closed its acquisition of Tru Brands Inc. Tru Brands is a health and wellness company focused on developing a suite of all-natural food products. Under the agreement, Heavenly Rx will acquire a 51% stake in Tru Brands for $3.5 million in cash and $2.57 million in company stock. Through a series of working capital injections, the company will eventually increase its stake in Tru Brands to 62%.

Auxly Cannabis

The tobacco industry is betting big on cannabis. Today, Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) announced that the international tobacco company Imperial Brands PLC will make a $123 investment in the company through a convertible debenture.

In Other News
Namaste Technologies

Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) announced that it has settled a series of class action lawsuits filed against the company in both the United States and Canada. The suits were filed in response to a report published by Citron Research alleging securities violations.  Without admitting guilt or liability, Namaste will pay $2.15 million to settle claims in Canada and $2.75 million to settle claims in $2.75. Much of the payout will be funded through the company’s insurance, Namaste itself will only contribute $500,000. In a statement, interim CEO Meni Morim said that the settlement was a “win-win for Namaste Shareholders and business partners alike.”

Cannara Biotech

Cannara Biotech Inc. (CSE: LOVE) (FRA: 8CB) (OTCQB: LOVFF) announced the release of its financial results for the third quarter, ending on May 31, 2019. Lease revenue was $506,785 and lease operating costs were $221,157. The company’s operating expenses for the quarter was $150,429, amortization expenses were $150,429, and the net loss was $2.8 million. As of May 31, 2019, Cannara had a net working capital amount of $28.43 million, which should be sufficient to fund its planned construction and operating expenses for at least the next year. “Given the size of our facility and the self-evident need for greater supply in the marketplace, we are as committed and confident as ever in our mission to be an integral cannabis producer in the Canadian landscape, combining scale with premium quality,” said said Zohar Krivorot, President and CEO of Cannara.

SOL Global Investments Corp.

SOL Global Investments Corp. (CSE:SOL (OTCPK:SOLCF) ) (Frankfurt:9SB) announced a $2 million capital infusion its portfolio company CannCure Investments Inc. The capital infusion is aimed at accelerating expansion initiatives of companies owned, or soon to be owned, by CannaCure; including Northern Emerald and One Plant Dispensaries.


William SumnerJuly 19, 2019
namaste2.png?fit=678%2C381&ssl=1

3min700

Expenses are up, and revenue is down as Namaste Technologies Inc. (TSXV: N) (OTCMKTS: NXTTF) tries to put the troubles of the past few months behind it. Yesterday the company released its financial statements for the three and six month periods ending on May 31, 2019.

Revenue for the quarter was $3.99 million, compared to $4.06 million during the same period in the previous year. For the six month period, revenue was $8.5 million, down from $9.6 million. The net loss for the quarter was $8.6 million. For the six month period, the net loss was $18.91 million, representing a year-over-year increase of $7.47 million.

For the six month period, selling, general and administrative expenses rose from $14.71 million in the previous year to $21.57 million. A significant contributing factor to Namaste’s rising expenses and decreased revenue was a combination of toxic news and legal issues involving its former CEO, Sean Dollinger.

Last October, the company came under a short-seller attack by Citron Research, which among other accusations, claimed that 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; placing the proverbial cherry on top of this scandal-ridden sundae.

Nevertheless, Namaste has endured and ended the second quarter with positive working capital of $63.3 million and was able to acquire a 49% stake in Calgary, AB-based Choklat Inc. and as well as increase its equity position in Pineapple Express Delivery Inc. to 49%.

In a statement, Namaste’s interim CEO Meni Morim expressed confidence in the company’s short-term outlook.

“We have improved the Company’s foundations to build the world’s most customer-focused cannabis marketplace,” said Morim. “From here, we are reprioritizing and refining our investments towards scalability, gaining market share and working capital management. We expect to see these results take shape over the next three to six months with a balanced approach between working capital optimization and the right investments to help the company grow.”


Debra BorchardtMarch 6, 2019
namaste2.png?fit=678%2C381&ssl=1

5min740

Namaste Technologies Inc.  (TSXV: N)  (OTCMKTS: NXTTF)  continues to see its troubles compounded following the recent scandal involving the company’s founder and former CEO Sean Dollinger. On Wednesday the company confirmed that its auditor PricewaterhouseCoopers, LLP resigned and will no longer be acting as the company’s auditor. Namaste said it was in advanced discussions with potential successor auditors, one of whom is in the final stages of its client acceptance process.

As a result of this situation, the company said it would probably be unable to file its financial statements that are due by March 31, 2019.

Irregular Advertising in Brazil

Namaste also noted that the National Heath Surveillance Agency (Anvisa) in Brazil advised the company that it has identified irregular online advertising of certain tobacco products on a website operated by Namaste and have advised that they are proposing to commence administrative proceedings in relation to same. As a result, Namaste is “temporarily suspending the sale of all of its products in Brazil pending a full compliance review with external counsel and other advisors. Sales of such products in Brazil are expected to represent approximately 8% of Namaste’s estimated revenue globally for the 15 months ended November 30, 2018.”

Suspension of Businesses

Namaste said it was reviewing all of its initiatives and as a result decided to let some of them go. These include the introduction of Namaste Café, a cook book and the H.E.A.L. product line in relation to its previously announced franchise distribution model. In addition, Namaste said it has “provided formal written notice of the termination of its agreement with ORH Marketing Ltd., in accordance with its terms. Management believes that the termination of these marketing and related initiatives can be achieved with minimal business disruption, and is expected to result in annual cash savings of approximately $3 million, which is net of expected transition costs.”

Acquisition

Somehow, in the middle of all this corporate mess, Namaste announced that it was acquiring 49% of the issued and outstanding shares of Calgary, AB-based Choklat Inc. for $1.5 million in cash.

According to the statement, Choklat is a  chocolate manufacturer with existing sales through its online eCommerce site and through a network of distributors across Canada. Choklat has recently entered into a supply relationship with Sobeys and already has product in 25 stores in Alberta with a goal to roll out in Western Canada and beyond in the coming months. As part of the acquisition, Namaste will be appointing a member to the Board of Choklat.

“Choklat is a great acquisition for us with a vast offering of existing products that can be easily infused with THC or CBD and sold as edibles,” said Meni Morim, Interim CEO of Namaste Technologies Inc. “Their small batch manufacturing model is a great fit within the new proposed regulations for edible cannabis products. This transaction provides the security of supply and manufacturing for our medicinal cannabis customers and provides capacity for the recreational market in the event proposed regulations are passed.”

“Almost two years ago I used my own prescription to personally research the concept of infusing chocolate and sugar with cannabis,” said Brad Churchill, Choklat Founder, and CEO. “As one of the only chocolate makers in Canada I had access to equipment and processes that other chocolatiers and confectioners don’t have.  My research led me to discoveries which, when legal, will allow us to infuse both THC and CBD into chocolate and sugar in such a way that there is absolutely no discernible “weed” flavour or smell, and with a dosage accuracy that is almost pharmaceutical grade.”


Debra BorchardtFebruary 19, 2019
namaste2.png?fit=678%2C381&ssl=1

4min990

The saga of Namaste Technologies Inc. (NXTTF) and its co-founder Sean Dollingers seems to have finally come to an end. The company announced that it has reached a settlement with Dollinger in which he will step down from all of his formal roles with the company, including that as a board member. Instead, Dollinger will enter into an advisory relationship with the company.

Earlier this month Namaste fired Dollinger and said it could be reviewing selling the company. Namaste came under a short seller attack by Citron Research in October 2018 which caused the board to form a Special Committee to investigate the allegations. The only one that was substantiated and required action according to the company was related to the sale of Namaste’s US subsidiary, Dollinger Enterprises US Inc., in 2017, and subsequent transactions involving its assets and companies in which Sean Dollinger and Namaste’s head of marketing David Hughes have a beneficial interest, as well as breaches of fiduciary duty by Sean Dollinger and evidence of self-dealing.

The company said it was also taking legal action against Dollinger for damages and disgorgement. In return, Dollinger filed a countersuit. As part of the settlement, Dollinger has agreed to drop his lawsuit.

“The events of the past few weeks have been difficult for everyone involved, but we are pleased to have reached a mutually agreed upon settlement that puts the interests of Namaste and our shareholders first,” said Interim CEO Meni Morim. “With this issue behind us, Namaste can focus on what matters most – growing our business and creating shareholder value. We have an excellent management team, a strong cash position, and a strategic plan that will drive innovation and growth. The future for Namaste is bright.”

The company also noted that as part of the Agreement Dollinger has agreed to a market standard standstill, under which, among other things, he will vote his Namaste shares in favour of the election of management’s nominees to the Board of Directors for three years. The company and Dollinger have also entered into standard non-solicitation and non-competition agreements.

Corporate Governance Update

Namaste also made the following announcements about the Board of Directors and its committees:

  • Branden Spikes has been appointed the Chair of the Board.
  • The Board has reconstituted the audit committee to be comprised of Branden Spikes, Sefi Dollinger and Laurens Feenstra. The Chairman of the committee is Laurens Feenstra.
  • A nominating and governance committee has been established, comprised of Branden Spikes, Laurens Feenstra, and Kiranjit Sidhu. The Chairman of the committee is Kiranjit Sidhu.

William SumnerOctober 26, 2018
daily_hit004.png?fit=1200%2C500&ssl=1

5min990

It’s time for your Daily Hit of cannabis financial news for October 25, 2018.

On the Site

MedMen Enterprises

MedMen Enterprises (MMNFF) reported fourth quarter revenues of $20.6 million, an increase of 1,317% over last year’s $1.5 million and a 44% sequential increase over the third quarter revenue of $14.3 million. The jump was attributed to the number of stores that came online during the quarter. However, operating expenses for the fourth quarter, including SG&A, was $72.6 million.

Canadian Cannabis Companies Report Record Sales Post-Legalization

It has been a little more than a week since recreational cannabis sales were launched in Canada, and already the policy has become a big hit. Millions of dollars in cannabis sales have already been recorded, and in the province of British Columbia alone there have been more than 21,000 transactions.

Cannabis Companies Are Navigating Trump’s Tariffs

Medical Marijuana, Inc. (OTC: MJNA) CEO Dr. Stuart Titus tells Green Market Report how his company has had to navigate the rapidly changing landscape when it comes to President Trump’s approach to international trade and tariffs.

In Other News

Aurora Cannabis Inc.

Aurora Cannabis Inc. (ACB) announced that the Polish Ministry of Health has given the company approval to import its first shipment of medical cannabis, which is expected to occur over the next several days. Aurora Deutschland GmbH will ship the product to a hospital and a pain treatment in Warsaw. “Becoming the first company to supply cannabis to Poland is validation of Aurora’s ability to do business in international markets with high barriers to entry,” said Neil Belot, Chief Global Business Development Officer for Aurora. “This is an important milestone for patient access in Poland…”

Namaste Technologies Inc.

Namaste Technologies Inc.  (N) today closed its previously announced bough deal short form prospectus offering, which included the full exercise of the over-allotment option. In total, 17.25 million units of the company were sold at a price of $3.00 per unit; generating $51.75 million in funding. Each unit consisted of one common share and three quarters of one common share purchases warrant. Eight Capital and Canaccord Genuity Corp. acted as co-lead underwriters and joint book runners. The underwriters for the deal received a 6% commission of the gross proceeds. The proceeds from the offering will be used by the company to general working capital; as well as inventory and supplies, capital improvements, personnel and facility operations, etc.

4Front Holdings, LLC

4Front Holdings, LLC announced that it has closed a private placement of equity securities. Initially seeking $15 million, the company increased the initial amount to $31 million due to increased demand. Eight Capital acted as the lead underwriter and bookrunner. The proceeds of the offering will go towards the funding of ongoing investments, the buildout of its multiple Mission-branded dispensaries and cultivation facilities, and for merger and acquisition opportunities. “The success of the Offering demonstrates that our message of pursuing prudent yet aggressive growth is resonating with investors,” said Josh Rosen, 4Front CEO and co-founder. “I’m particularly excited by the caliber of our new investors, as well as the broad participation in the Offering by our existing investors.”


StaffSeptember 26, 2018
namaste2.png?fit=678%2C381&ssl=1

4min500

Namaste Technologies Inc. (NXTTF) entered into a letter of engagement with Eight Capital to purchase, as co-lead underwriter and joint bookrunner with Canaccord Genuity Corp., 15,000,000 units of Namaste, on a “bought deal” basis pursuant to a filing of a short form prospectus, subject to all required regulatory approvals, at a price per unit of $3.00 for gross proceeds of $45,000,000. The deal is expected to close on or about October 17.

Namaste plans on using the net proceeds to fund inventory and for working capital and general purpose.

Namaste has also agreed to grant an over-allotment option to purchase up to an additional 15% of the units at $3.00, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full, an additional approximately $6,750,000 will be raised pursuant to the Offering and the aggregate proceeds of the offering will be approximately $51,750,000.

In addition to doing the $45 million deal, Namaste announced that RMMI Corp.’s (CSE: RMMI) wholly-owned subsidiary, Rocky Mountain Marijuana Inc. signed a medical cannabis supply agreement with Cannmart, which is a wholly-owned subsidiary. Cannmart will purchase medical cannabis from Rocky Mountain to offer in its online medical-cannabis marketplace.

Cannmart received its Access to Cannabis for Medical Purposes Regulations medical cannabis “sales-only” license with no cultivation, which is the first of its kind to be issued by Health Canada earlier this week.  With this license, Cannmart will be allowed to buy pre-packaged, labeled and tested cannabis products. 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 and profitability.

“We are extremely pleased to have been chosen as a supplier to Cannmart.  RMMI’s goal of supplying the highest organic-quality cannabis products by “Blending Science with Nature” and using aeroponics cultivation systems, complements Namaste’s approach to employing advanced technology to best serve its rapidly-growing customer base,” said Earl Connors, President, and CEO of RMMI.  “RMMI looks forward to exceeding Cannmart’s expectations and expanding its relationship with Namaste.”

Namaste Technologies calls itself “Your Everything Cannabis Store.” According to the company statement, it 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.

On Tuesday, Namaste named PricewaterhouseCoopers LLP as its new auditor.  PWC will replace MNP LLP as Namaste’s auditor.

Stock Performance

The stock was lately trading at $2.25, falling over 7% on news of the bought deal. This is down from the 52-week high of $3.27, but above its year low of 16 cents. Last week, Namaste was included in the Horizons HMMJ ETF. Still, the company also found itself in hot water when Tilray canceled its contract with Namaste over a marketing event featuring models in nurse costumes.


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.


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 – 2 hours

A Rhode Island Grower Won a Cannabis Competition, the State Fined it $10,000

@GreenMarketRpt – 3 hours

Minnesota Regulators Sue Edibles Companies Over Potency, Product Violations

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.