Namaste Technologies Stock
Namaste Technologies Inc (OTCMKTS:NXTTF, CNSX:N) is better known for its production of cannabis-related products like vaporizers, but the company has scored big in April as it continues to expand its reach into the medical marijuana market. Namaste Technologies stock has jumped over the past week since it announced the 2624078 Ontario Inc. acquisition. The buy is further evidence that NXTTF stock is looking to become a major player in the medical marijuana sector, and the market response from investors has been strong.
The Namaste stock price today is about 10% higher than it was before the announcement. This shows that investors are keen on Namaste Technologies stock’s expansion into medical marijuana instead of remaining a provider of marijuana tech only.
While Namaste has been making forays into providing medical cannabis for over a year now, this represents a major step forward for the marijuana penny stock.
2624078 Ontario Inc. Acquisition
The 2624078 Ontario Inc. acquisition sees NXTTF stock buying up 51% of the company.
Following the deal, 2624078 Ontario Inc. will apply to become a licensed dealer of medical cannabis, which means that it’ll have to jump through a few hoops with Health Canada regulators.
Chart courtesy of StockCharts.com
Most importantly, however, is that licensed dealers are permitted to perform research and development on medical cannabis, again signaling Namaste Technologies’ intention to expand its role in that market.
“We are very excited to be working with Namaste on this project. We believe that our experience in cannabis extraction technology and many years of experience in the general cannabis industry will facilitate the success of this partnership with Namaste, who we believe is a leading innovator in the Canadian medical cannabis community,” said Daniel Stern, president and CEO of 2624078 Ontario Inc., in a statement. (Source: “Namaste Announces Share Purchase and Medical Cannabis Licensed Dealer Application Letter of Intent with 2624078 Ontario Inc,” Namaste Technologies Inc, April 5, 2018.)
Another boon to Namaste Technologies stock following the deal was the announcement that NXTTF stock is looking to create a licensed dealer facility (pending approval from Health Canada), which will be located just outside of Toronto, directly across from Namaste’s wholly-owned subsidiary Cannmart Inc.‘s Access to Cannabis for Medical Purposes Regulations (ACMPR)-approved facility.
With licensed dealer approval, the company will be able to import medical cannabis from international partners in order to test these products against ACMPR standards.
The ACMPR license acquisition, therefore, is critical to the future success of this deal.
The company estimates that 50% of all dispensary sales in the U.S. are cannabis extracts.
The company is also banking on Canadian marijuana legalization to create more interest in these higher potency products.
The one caveat is that high potency concentrates are not yet approved under ACMPR, making the whole situation a little less certain.
“Although high potency concentrates are not yet approved under ACMPR regulations, the LD license will provide Namaste with the opportunity to take the first steps towards not only researching and producing extracts but also engage in the process of importing medical cannabis for testing purposes,” said Sean Dollinger, president and CEO of Namaste, in a statement.
“The management team of 2624078 Ontario Inc. has shown confidence in Namaste’s leadership abilities as demonstrated through our success in the industry to date. The launch of NamasteMD and our pending ACMPR sales license coupled with this LOI and the application for an LD license are important building blocks to solidify Namaste’s position as a leader in the Canadian medical cannabis industry.”
So while NXTTF stock was the recipient of a healthy stock bump today, the deal hinges on acquiring the ACMPR license as well as pushing for an expansion of that regulation to include higher potency products.
After all, the company hopes to be on the cutting edge of marijuana tech, and in order to do that, it will need to be as unfettered as reasonably possible to pursue exciting avenues in cannabis products.
Namaste Technologies stock is certainly enjoying the boon that it received over the past few days from this announcement, but how it will play out over the long term for the company is still up in the air.
So much rests in regulators’ hands when it comes to marijuana, with this case being a great example of that process in action.
The medical marijuana industry is starved for good news as the industry continues to take a beating in 2018, so this is welcome news for marijuana bulls. Provided all goes smoothly with Health Canada, Namaste Technologies stock could have just made a winning play.