Namaste Technologies Inc (CVE:N) (OTCMKTS:NXTTF) (FRA:M5BQ) is generating some buzz this morning. The company released back-to-back press releases which resulted in minor out-performance at the open, although no follow-through has resulted. Regardless, it’s news worth reporting on as the company released the uncommon double morning presser.
First up for Namaste Technologies was their 8:00am press release, indicating it had signed a revenue-sharing agreement with Cannvas MedTech. The agreement calls for the two companies to share revenue generated through co-branding and marketing efforts between Namaste’s medical cannabis patient portal, NamasteMD, and the Cannvas.me cannabis education platform. The overall aim is to drive new patient acquisition and offer convenient access to book medical cannabis consultations through NamasteMD.
Namaste presents itself as the world’s largest and most comprehensive cannabis-focused e-commerce platform with 32 sites in 20 countries and over 600,000 monthly visits to their e-commerce sites with a database of approximately 1.5 million users.
Just a half hour later, Namaste delivered even more material news. The company announced a wholesale supply agreement with Manitoba-based ACMPR Licensed producer, Bonify Inc. Namaste will work with Bonify to develop private-label strains of cannabis for the mixed market, and will offer a full suite of Bonify products. Bonify produces medical cannabis products in main production facility in Winnipeg, Manitoba, with potential for 100,000kg/annualized dried flower production at full capacity.
Additionally, the company announced it has registered over 14,000 users in its online patient portal and mobile app, NamasteMD representing a 130% increase in registered users in approximately 2 months.
From an investing standpoint, Namaste has been in a holding pattern over since late April. It hasn’t been prone to the extreme shift in sector sentiment—in either direction. This prolonged basing pattern is eventually going to lead to an outsized move, although this news doesn’t appear to be the catalyzing event to set the stock in motion.
Midas Letter will continue to update the company’s progress as further events warrant.
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