Namaste Technologies Inc (OTCMKTS:NXTTF) is still a cannabis runner even on its poor run of form in recent months. Just like other companies in the sector, the stock has come under pressure and in the process shed nearly 60% in market value. However, the bear run cannot in any way be attributed to deteriorating performance.The market leader in the legal marijuana sector has signed a number of supply agreements whose impact can only be felt going forward. That said, the stock should bounce back on sentiments improving in the broader cannabis industry, after recent sell-off. NXTTF Daily ChartThe stock is currently trading at the $1.23 handle and needs to rise and stabilize above the $1.50 handle, to affirm the end of the bear run. Above the $1.50 mark, the stock could make a run for the $2.50 handle seen as the next critical resistance level.Given that the stock is currently trading in a range, it faces immediate support at the $1 a share mark, below which it remains susceptible to further declines to the $0.50 mark.About Namaste TechnologiesNamaste Technologies is a developer, manufacturer, and distributor of vaporizers, pipes, papers and other accessories used for aromatherapy purposes. In the recent past, the company has switched its focus to the booming medical marijuana industry.The company currently bills itself as a global leader in the sale of medical cannabis consumption devices. The firm has nine offices with multiple distribution centers around the globe. It also operates over 30 websites under various brands.Recent DevelopmentNamaste Technologies has served a number of catalysts in the recent past, which could have a significant impact in strengthening investor confidence in the stock. The company has been aggressive on the signing of distribution and supply agreements as it looks to strengthen its sales channel.Lowell Herb Co DealThe global leader in the sale of medical cannabis consumption devices has signed a supply and distribution agreement with Lowell Herb Co for the launch of Lowell Smokes Brand. The ultra-premium cannabis products are for the Canadian recreational and medical cannabis markets.Namaste is to work with Lowell Smoke’s procurement team to source the highest cannabis grown with organic methods. Lowell Smoke is to pay Namaste Technologies a 5% royalty fee, for all wholesale orders sold through CannMart.The strategic partnership comes at a time when Canada is nearing legalization of marijuana use for recreational purposes, an opening that would expand the target market for the two companies. In addition, the strategic partnership will provide Namaste Technologies exposure to California legal cannabis market, which is the most competitive in the world. Lowell has already established itself as one of the strongest brands in the state.
"We believe the strength of the Lowell Smokes brand makes it a perfect brand to be distributed globally. We have seen the sales data in California, the largest and most competitive market in the US, and it's clear that customers love and adore the Lowell brand,” said Sean Dollinger, President, and CEO of Namaste Technologies.
Shatterizer Distribution AgreementIn addition to the Lowell Smoke deal, Namaste Technologies has signed, an exclusive international distribution agreement with Shatterizer Inc. Pursuant to the agreement, the company will retain exclusive rights to sell Shatterizer’s innovative line of cannabis concentrate vaporizers in international markets.The two companies will also work together on the launch of a pod-based vaporizer system for the Canadian recreational market. Namaste through its wholly owned subsidiary Infinite Labz Inc. is to produce cannabis oil and provide filling and distribution for Shatterizer’s upcoming pod-based concentrate vaporizer system.The strategic partnership provides an opportunity for the company to capitalize on the emerging market, for concentrate pens and pre-filled cartridges in both recreational and medical cannabis markets. The company anticipates an accelerated demand for cannabis oils and pre-filled cartridges.
“Our goal with Infinite Labz is not only to produce cannabis extracts but to also provide filling and distribution for pod-based vaporizer systems in which we anticipate seeing an increasing demand for the recreational cannabis market,” said Mr. Dollinger.
Findify.io AcquisitionNamaste Technologies has moved to ensure personalized experience on the sale and distribution of its products in the cannabis industry with the acquisition of Swedish based AI and machine learning technology platform Findify AB.The company paid $12 million in cash and stock, to gain access to the global leader in AI-powered e-commerce technology. The firm has made a name for itself on the delivery of solutions such as personalized search, recommendations, and advanced data analytics.The Findify platform uses real-time machine learning algorithm to deliver a personalized experience to each customer shopping online. Acquisition of Findify AB should accelerate Namaste Technologies growth strategy while also enhancing conversion rates and revenue generation.Bottom LineNamaste Technologies bear run in the market cannot in any way be attributed to deteriorating performance. The company has made significant strides in strengthening its core business by pursuing sales and distribution channels expected to strengthen revenue streams.As soon as the broader cannabis industry bounces back from the recent bear run, Namaste Technologies should also climb higher, supported by solid fundamentals.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.
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