Namaste Technologies Inc (OTCMKTS:NXTTF, CVE:N) is one of the more intriguing companies in the legal marijuana industry. Half marijuana company, half technology company, Namaste Technologies has long been of interest to investors because it represents a unique way to play the marijuana market.
And that novel approach is paying off.
Namaste Technologies stock is up about 37% over the past month. It has been carried upward on the strength of the boom that took place in the cannabis sector last week.
But NXTTF stock is not only being propelled by the marijuana bull run; it has scored several major individual victories in August on its own merit.
Chart courtesy of StockCharts.com
NamasteMD Mobile App
One of the company’s biggest announcements in August had to do with the continuing expansion of its online portal “NamasteMD.”
The most recent development was that the NamasteMD mobile app was released, making it Canada’s first fully-compliant medical cannabis patient portal. (Source: “Namaste Announces Approval of NamasteMD Android App and Accelerates Patient Acquisition in Anticipation of Sales License,” Namaste Technologies Inc, August 24, 2018.)
The app essentially allows users to register as patients and order marijuana online, which then Namaste delivers. The marijuana is provided by over 10 producers with which Namaste has signed supply agreements (more on that below).
The company operates over 30 e-commerce sites with over 1.5 million customers around the world.
Namaste Technologies hopes to maintain a minimum of 50% gross margin on cannabis products sold directly on its web site. Consider that the company has its eyes on global expansion, so we could see revenue begin to soar before too long.
The company plans to use its technology services to reach even more international markets. It also plans to expand its product offerings via product development and newly signed multiple supply agreements.
Alongside its partial acquisition of Pineapple Express Delivery Inc., a same-day marijuana delivery service, the company hopes to become a powerhouse in marijuana through the marriage of tech and pot, using its innovative approach to carve out a niche.
Marijuana Supply Agreements
The company is doing more than just developing its app.
Namaste Technologies stock has also jumped as result of its numerous supply agreement signings.
Perhaps the biggest deal was with Bonify Inc., a Canadian licensed marijuana producer. (Source: “Namaste announces supply agreement with Bonify and acquisition of over 14,000 registered users with NamasteMD,” TMX Money, August 22, 2018.)
The two companies signed a wholesale supply agreement that will see Namaste purchase bulk cannabis products from Bonify, which hopes to expand with a new marijuana cultivation facility.
Alongside that release, Namaste announced that it had registered 14,000 users to its online patient portal and mobile app. This was a 130% increase in registered users in about two months.
The cumulative effect is that Namaste has both the supply and the demand to be profitable for years to come, should its gamble on tech-marijuana pay off.
A final new venture for a company that already seems to have a dozen going at the same time, Namaste has announced that it would like to enter the recreational marijuana market in Canada.
In keeping with its technology roots, the company wrote that it believes that its age and identity verification tools “have the potential to provide far superior authentication and security for provincially approved cannabis products.” (Source: “Namaste announces recreational cannabis market strategy,” Cision, August 28, 2018.)
Again, Namaste is hoping to leverage its expertise in tech to fill a niche in the marijuana sector.
But the company also announced that it would eventually like to distribute recreational marijuana products through its online portal, which would lead to a further expansion of product offerings.
Namaste Technologies stock is an interesting one. It doesn’t usually stray too far from the marijuana industry trends, but it certainly fills a unique role.
The company has long said that it hopes to be the “Amazon of pot” through its reliance on e-commerce and online platforms.
It’s a lofty goal and one that has real potential. As such, I’m rather bullish on NXTTF stock, with the company filling a niche that could help propel it into gains for many years to come.