Looking down the barrel of a $1.9 million comprehensive loss in 2016, cannabis product ecommerce outfit Namaste Technologies (N.C) had their cease trade order lifted Wednesday, following a short halt when their financials were filed late.
- The numbers weren’t exactly sterling to the casual observer:
- Revenue down from $4.5 million to $3.4 million
- Gross profit down from $2 million to $1.1 million
- Gross margin down from 44% to 32%
- Operating costs up 132% from $1.4 million to $3.2 million
- Comprehensive loss of $1.9 million, compared to a 355k profit the previous year
Added to this, missing the filing deadline for financials was a black eye.
So why hasn’t the stock been crushed upon its return to trading?
This:
On a proforma basis, including the acquisition of assets relating to URT1 Limited during Q1 of fiscal 2017, management estimates the combined assets of Namaste, VaporSeller and URT1 generated revenue of $12,423,486.
Yep, the company not only went public, which incurred about a million in costs, but also bought two major ecommerce assets in VaporSeller and UTR1, which if they’d been accruing revenue for Namaste throughout the year, would have brought in a whopping $12.4 million in revs.
That would have completely transformed the other numbers, obviously.
Namaste has traded around the mid $0.20’s range for most of its public life, registering a $28 million market cap. The company is run by a pair of SEO-traffic builder experts who have made great money over the last several years selling all manner of items online.
With their two acquisitions last year, they maintain the world’s largest network of vapes and cannabis users products.
— Chris Parry