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NAMASTE TECHNOLOGI (OTCMKTS:NXTTF) Is A Cannabis Runner

NAMASTE TECHNOLOGI (OTCMKTS:NXTTF) Is A Cannabis Runner
Written by
Jarrod Wesson
Published on
December 30, 2017
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Very recently, we have been studying one of the most exciting home runs seen in 2017. It is stock issued by NAMASTE TECHNOLOGI (OTCMKTS:NXTTF), the largest online retailer for medical cannabis delivery systems globally. Company Logo - NAMASTE TECHNOLOGI OTCMKTS:NXTTFSeveral supply agreements with companies operating in the marijuana field, an astonishing increase in the revenue line, and several increases in assets seem to be making the stock price spike up. Have a look at it and don't only focus on the share price appreciation, but also note that more than 4 million shares changed hands some days. Many people seem to be assessing the company right now: 1 month chart for NXTTFBusinessNamaste Technologies Inc., headquartered in Vancouver, Canada, operates in the vaporizer and accessories sector. The company runs more than 30 e-commerce retail stores in 20 countries, which offer a wide range of brand name vaporizers products. Additionally, NXTTF also manufactures and launches multiple unique proprietary products for retail and wholesale distribution.What our readers will like the most is that the company is mainly focused on the commercialization of legal cannabis products. Thus, NXTTF is profiting from the increase in the demand for marijuana products that appeared after their legalization in some states in the US and Canada. It is quite smart.The most interesting in this business is that it is expanding its product offering, acquisitions and strategic partnerships, and entering into the new markets globally. It seems that it is the right time to research the company, before the company growth makes the whole market aware of the opportunity.How is the company driving traffic to the e-commerce retail stores? According to the company website, the current strategy of growing site traffic consists of increasing the presence in search engine results. Additionally, NXTTF was said to be acquiring companies with large databases and strong presences in key markets. The results are extraordinary. Have a look at the following photo taken from the company's website: Traffic Growth from https://www2.namastetechnologies.comAnother interesting trick is given on the site. The acquisitions are usually made before the cannabis legalization. So, growing its presence in new market is made at a low cost. To sum up, the management running this company seems to know what it is doing.The list of transactionsThe company seems to be very well connected. It has been able to receive financing at high rate and acquire businesses everywhere at the same rate. The increase in revenues, cash and assets, and know-how is the result of this smart strategy. The following is the list of the most significant transactions noted in the company materials:

  • On March 9, 2017, the company announced that it has completed its “bought deal” private placement with Eight Capital and Canaccord Genuity Corp. that provided $11.338 million in financing.
  • On March 14, 2017, NXTTF announced that it has signed a Memorandum of Understanding with Vinergy Resources Ltd. to jointly market Vinergy’s proprietary Cannabidiol (CBD) extract formulations through referral traffic generated on Namaste’s sales channels and websites.
  • On March 16, 2017, the company announced that it has completed its acquisition of Australian Vaporizers PTY Ltd. After the transaction, the company controls approximately 90% of the vaporizer online retail market in Australia.
  • On April 20, 2017, the company announced that it had entered into a services agreement with CANOPY GROWTH CORP (OTCMKTS:TWMJF), which is another micro cap runner that we have featured as well.
  • On May 3, 2017, the Company announced that it has completed its acquisition of all of the issued and outstanding shares in the capital of CannMart Inc.

Recent Developments in November and DecemberThe share price spike occurred in November and December. Thus, we will review the most interesting announcements released in these two months.We were glad to hear that the recently acquired businesses are performing well. Many times, after an acquisition, the target loses key employees and value if the merger integration is not well executed. This does not seem to be happening with NXTTF. It released, for example, that Cannmart Inc. was able to announce that the updated Access to Cannabis for Medical Purposes Regulations application has been submitted to Health Canada.That's not all.The application for NamasteMD, a new telemedicine smartphone app, was also submitted to both the Apple Store and Google for approval. In addition, multiple doctors and nurse practitioners have been consulted and will be trained to provide consultations on the NamasteMD app and medical documents will be issued to Namaste's patients.The most interesting is that CannMarts online portal has been integrated with NamasteMD. Namaste strongly believes that it will soon become Canada's leading online retailer for medicinal cannabis. In our opinion, if the company is able to show its proprietary identity and age verification technology and machine-learning algorithms to the doctors, this ambitious goal could be achieved.Regarding the distribution of legal marijuana in Canada, the company's online traffic seems to be working well. We concluded this after reading the distribution agreement with AURORA CANNABIS IN (OTCMKTS:ACBFF). Namaste Technologies will be distributing BCNLs premium home cultivation systems and accessories through its online technology platform. We have written a lot about ACBFF and know the company well.The company is also selling assetsWe appreciate that the company is not only buying interesting assets, but also selling divisions that are not performing. This strategy should be very beneficial in the long term. In our opinion, it helps the company remain flexible and also facilitates NXTTF in focusing on its core activities.The last division sold was the wholly owned US subsidiary, Dollinger Enterprises US Inc. for $400,000. The deal included the domains Everyonedoesit.com and NamasteVapes.com, which combined represents less than 7% of Namastes current gross revenue, both of which are currently operating at a net loss.New acquisitions and agreements comingThe company does not seem to stop and is trying to acquire new businesses in the marijuana sector. Have a look at the following Letter of Intents announced in December:

  • Non-binding Letter of Intent with O Cannabis We Stand On Guard For Thee, under which O Cannabis will provide patient consultation services to Namastes.
  • Letter of Intent with Supreme Pharmaceuticals Inc., which will supply CannMart a premium range of high quality dried cannabis flower.

That's not all. A Fulfilment Services Agreement with Greenlane Canada was signed also in December, whereby Greenlane will provide exclusive order fulfilment and warranty services for Namastes Canadian websites. The new agreement was said to be very beneficial for the company, as it will help reduce inventory and operational expenses, bringing the company closer to profitability.Additionally, on December 27, 2017, it released a new Letter of Intent with BRLev AGRICULTURAL CROPS LTD. BRLEV will supply Cannmart with high quality medical cannabis, to be imported by Cannmart from Israel and offered in the Companys online marketplace. The companies remarked that the current demand for imported cannabis represents an overlooked opportunity.We need to make a strong remark about all the Letter of Intents signed with other companies. These contracts are usually intended to become more definitive agreements and the companies could be acquired by NXTTF. New acquisitions should make the share price spike, so follow closely the next announcements.ConclusionCurrently trading with a market cap of $703 million, NXTTF is an exciting story among small caps. With $2.4 million in cash, $15.8 million in assets and only $2.1 million in total liabilities, the balance sheet is another thing to like. Furthermore, the revenues have gone from zero three years ago to $2.3 million as of May 31, 2017, which represents astonishing growth.To sum up, keep following this name, as it is very well placed to become a market leader in the legal marijuana sector.We will be updating our subscribers as soon as we know more. For the latest updates on NXTTF, sign up below!Disclosure: We have no position in NXTTF and have not been compensated for this article.Image courtesy of Digital Aesthetica via Flickr

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