Namaste (N.C) inks several deals, including Canopy partnership, as $6m financing closes

Namaste Technologies (N.C) entered the market last year with a mandate to become the premier retail e-commerce distributor of vaporizers globally.

Lofty aspirations, sure, but Namaste has been executing on its strategy and now has 30-plus international websites in 20-plus countries offering over 30 vaporizer brands in 10 different languages.

And that was before the onslaught of new deals in the past week, when it announced a plan to acquire Australian Vaporizers, which has 80% of the Australian online vape market, and 48,00 customers, and a web referral MOU with Marijuana.ca. Before that, they signed distributions deals with Marley and Nimbin products.

And then there’s that little deal with a company called Canopy Growth Corp (CGC.T).

The Canopy agreement calls for Namaste to actively migrate medical cannabis consumers to the licensed producer, and both companies will explore the development of new delivery devices for the consumption of cannabis, and work together to educate Namaste’s Canada-based clients on the legal, regulated framework for medical cannabis.

Namaste will also assist in the development of Canopy-branded vaporizers and accessories.

That’s been good for the N-word, the share price of which had sunk to just $0.16 before they started throwing elbows. That stock price had drifted mostly on the back of  several deals in which they purchased web properties, building relationships with Pax Labs, Firefly, eBay, VaporTown USA and Inhalator, while acquiring the assets of VaporSeller and URT1 Limited. That much buying can only hurt profitability in the short term, which explains the company’s financial performance in 2016 and ensuing dip.

President and CEO of Namaste, Sean Dollinger, commented, “The first quarter of 2017 represents substantial financial progress. In the first quarter, our team obtained these results while integrating multiple acquisitions and fulfilling orders during some of our most active months. Going forward, we continue to streamline operations, including optimizing our websites, human resources, and distribution networks, and believe financial results will continue to reflect the value we have created for shareholders.”

But the stock went on an absolute burn from February 17 to 22, jumping from $0.16 to $0.40 before finding a solid base above $0.30. Volume has picked up appreciably, and the company announced a $6 million bought deal financing at $0.25 a share which will tool them up for more acquisitions, and the warrants of which are just about in the money. That financing put the brakes on the stock run, but will see the company move forward with a stacked war chest.

Namaste anticipates turning a profit in 2017 and judging how it has positioned itself, it just may do that in spades.

— Gaalen Engen

 

Leave a Reply

Be the First to Comment!

Notify of
avatar
wpDiscuz