Vancouver-based cannabis delivery system producer Namaste Technologies Inc. (CSE:N) (FRA:M5BQ) (OTCMKTS:NXTTF) announced receipt from Health Canada of a “Confirmation of Readiness” for a sales license for its wholly-owned subsidiary Cannmart.
The stock was up 6% to CAD$3.38 midday on the news. It trades at 62 times sales, which were $8.8 million in the last 12 months. It also trades at 54 times its book value.
Namaste currently distributes vaporizers and smoking accessories through e-commerce sites in 26 countries with 5 distribution hubs located around the world. It is the largest online retailer of medical cannabis delivery systems globally.
Namaste has a majority market share in Europe and Australia, with operations in the UK, Canada and Germany—and has opened new supply channels in emerging markets including Brazil, Mexico and Chile.
Through its purchase of Cannmart, Namaste is pursuing a new revenue source, the Canadian online retail medical cannabis market. It will use its site traffic, consumer database and patient acquisition tool, NamasteMD.com, to try to become Canada’s leading e-commerce retailer for medical cannabis products.
Namaste is now focused on giving all information to Health Canada to get the “sales-only” license issued. It will then begin sourcing medical cannabis from domestic and international producers to offer the largest variety of strains possible. Namaste’s goal is to create a simplified user experience to assist patients with a smooth onboarding process and access to the highest quality products available on the market.
Sean Dollinger, President and CEO of Namaste said: “We believe we are finally poised to execute on our strategy to become the most comprehensive online marketplace for medical cannabis in Canada. …While this is an important step in our journey, we believe this is only the beginning of a transformational year for Namaste and its shareholders.”