Vinergy Resources (VIN.C) added to its proposed acquisition of MJ BioPharma when the company announced today that it had entered into a Memorandum of Understanding (“MOU”) with Namaste Technologies (N.C) for the commercialization of proprietary Cannabidiol (“CBD”) extract formulations through Namaste’s retail websites in the United States.
According to the news release, Namaste will put MJ BioPharma’s extractions in front of over 300,000 unique visitors every month through its channels in California and Colorado. There is also a potential of expansion to other states.
If you’re looking for context, the 2017 Cannabis Industry Annual Report generated by New Frontier Data estimates that the U.S. legal cannabis market was worth $6.6 billion in 2016 and will grow to $24.1 billion by 2025 with a compound annual growth rate or CAGR of 16%.
And this forecast came after the announcement from the Trump administration that it would not support the spread of legalization on a recreational level.
But back to the matter at hand…
The Namaste deal could develop into something quite large, as the emerging leader in vaporizers and accessories has 26 ecommerce retail stores in 20 countries.
However, to really taste victory, MJ BioPharma needs to perform over the next 12 months and execute on these deals as well as develop its pipeline – that’s a tall order.
MJ BioPharma CEO, Kent Deuters, feels up to the task and expressed his thoughts on the MOU with Namaste, “We are excited and committed to working collaboratively with Namaste to bring to market our unique formulations. Namaste is an ideal partner based on their industry leading online presence and established customer base.”
Sean Dollinger, CEO of Namaste, added, “We are very pleased to work with Vinergy to further expand our product line. This relationship represents continued monetization of Namaste’s database and we view broadening our strategic alliances to the benefit of our customers and shareholders.”
FULL DISCLOSURE: Vinergy Resources/MJ BioPharma is an EQUITY.GURU client.