With 2018 coming to a close, we have been focused on companies that are well positioned for growth in 2019. The recent weakness in the cannabis industry has created a great opportunity for investors to look into quality cannabis businesses that.

One company that has significant advanced its fundamental story is Namaste Technologies (N.V) (NXTTF) and we are bullish on the growth prospects heading into 2019. Earlier this year, Namaste’s wholly-owned subsidiary, Cannmart, was granted a medical cannabis sales-only license with no cultivation from Health Canada. This was the first license of its kind to be issued by Health Canada and this development represents the most significant milestone in the history of Namaste.

Following the granting of this license, Namaste has been laser focused on growth and has reported several significant developments. Today, we have provided an update on the company and will continue to monitor this opportunity.

Focused on the Cannabis Delivery Opportunity

Last week, Namaste Technologies increased its ownership stake in Pineapple Express Delivery and an affiliated entity through a share purchase agreement to acquire an additional 34% of the company for approx. $3.06 million worth of common stock. Once this transaction is complete, Namaste will own 49% of Pineapple Express and we will monitor how the team executes on this.

Pineapple Express is a same-day delivery platform for medical cannabis and has been operating in Manitoba and Ontario, with plans to expand into other provinces. Cannmart recently launched same-day delivery services to its patients through Pineapple Express and has been satisfied with the results thus far. Namaste has plans to scale this operation, which will continue to operate as an independent entity from Namaste, by offering its services to Licensed Producers across Canada.

Namaste’s agreement with Pineapple Express supports the company’s strategy to invest in innovative companies which bring value to the company as well as the broader market. Namaste believes that same-day delivery for medical and recreational cannabis through Pineapple Express’ platform will provide patients and consumers with added-value and looks forward to the expansion of the platform across Canada.

Reports Record Breaking Monthly Revenue

Earlier this month, Namaste reported strong monthly revenue numbers and announced record-breaking unaudited gross revenue of $2.6+ million, representing approx. 52% growth over the prior month and approx. 30% growth on a year-on-year basis after excluding U.S. revenue derived during the month last year.

November revenue derived through Namaste’s global platform was almost entirely from the sale of vaporizers and smoking accessories. The company has been focused on cannabis sales through its wholly-owned subsidiary, Cannmart, Canada’s first medical cannabis sales-only licensed issued to a non-cultivator and an online marketplace where medical patients can purchase medical cannabis sourced from a variety of producers across Canada. By expanding on the product offering through Cannmart, the company anticipates building its platform to represent the most diverse offering of high-quality cannabis products available in the Canadian market.

Following Cannmart’s recent acquisition of Buds2go.ca, it anticipates launching its second online platform through Buds2go this week. The acquisition of Buds2go.ca is significant the domain holds strong organic search rankings with more traffic than Cannmart. The company recently announced its strategy to secure supply channels through future micro-cultivators, subject to the regulations Cannabis Act, and intends to offer the largest variety of craft cannabis products through Buds2go.ca.

Namaste intends to import medical cannabis to the Canadian market through strategic supply agreements with Good Manufacturing Process (GMP) certified international cultivators, subject to approval by Health Canada. Furthermore, Namaste is focused on launching cannabis sales within its global markets where the company maintains strong market share like the UK. Namaste’s database of customers through its vaporizer and accessory business spans across 20 countries.

Signs Significant Supply Agreement

Earlier this month, Namaste’s subsidiary, Cannmart, signed a supply agreement with AgraFlora Organics International Inc., a growth oriented and diversified international cannabis company. Under the agreement, Cannmart may purchase medical cannabis products from AgraFlora’s Propagation Services Canada (PSC) greenhouse operations in Delta, BC , subject to approval of its cultivation and sales licenses by Health Canada.

This is a significant development whereby Cannmart reserves the right of first refusal to purchase up to 10% of the total annual production from AgraFlora’s large-scale Delta Greenhouse Complex, representing 25 million grams at $4 per gram, or up to $100 million in annual revenue. Total production costs are expected to be between 20% to 24% of total revenue and this represents a significant opportunity for Namaste.

When the 2,200,000 sq. ft. Delta Greenhouse Complex is fully operational in 2021, the facility is expected to be able to produce approx. 250 million grams of premium cannabis on an annual basis.

GTEC Proving to be a Strategic Partner

In early December, GTEC Holdings’ (GTEC.V) (GGTTF) subsidiary, Alberta Craft Cannabis (ACC), completed its first sales of cannabis to CannMart. This comes less than a month after ACC received its updated Cultivation License from Health Canada, permitting the sales of bulk cannabis to other Licensed Producers.

This is a significant development and comes after the companies entered into a supply agreement in late August. Under the terms of this agreement, CannMart purchased cannabis flower from ACC, for resale on CannMart’s on-line platform, under GTEC’s flagship medical brand, GreenTec.

We are favorable on the relationship between the companies and will monitor how the teams continue to work together. GTEC is in the middle of a major expansion and signed an agreement to merge with Invictus MD Strategies (GENE.V) (IVITF). The growth prospects between Namaste and the GTEC are significant, especially after the merger is complete.

Announces the Launch of an Innovative Cafe

In early December, Namaste announced plans to launch the Namaste Café global concept, an exciting new retail brand that is expected to revolutionize the concept of the modern café. The company also announced its exclusive line of H.E.A.L. (Healthy Eating and Living) branded food-products in partnership with chef Pete Evans. H.E.A.L will feature products and recipes specifically designed by Pete with a cannabis twist.

The H.E.A.L brand will be launched along with an educational platform including video content with recipes and ingredients needed to cook like the pros from the comfort of your home. Subject to the anticipated regulations for cannabis edibles and concentrates, the company will produce a line of cannabis-infused H.E.A.L branded products for sale through the regulated market.

The Namaste Café will be an immersive medical cannabis education-focused café that will center on safe use and responsible methods of consumption directed at an age-appropriate audience. The Namaste Café will proudly serve the “world’s worst coffee” through a supply agreement to be agreed with Pigeon Coffee. Each store will offer interactive cannabis education opportunities through Namaste’s online portals, hold in-store events and public seminars, Namaste’s full line of premium vaporizers and cannabis accessories along with non-cannabis H.E.A.L products will also be available for purchase in-store.

The location of the flagship store will be announced within the next 60 days, with the first store projected to open early next year. Namaste plans to open up to 20 franchise locations across Canada by the end of 2019, along with three overseas locations, including one in the UK, subject in each case to local laws.

A Company Worth Watching

Although Namaste has significantly advanced its fundamental story, the shares have been under considerable pressure and have been trading lower with the market. The company is comprised of several wholly owned subsidiaries that significantly enhance the growth profile and we are favorable on this.

Namaste has a very attractive operating structure as these subsidiaries are able to complement and create value for each other. The company’s ability to integrate these subsidiaries is crucial to the success of Namaste and the management team has been very focused on this.

Namaste represents a very unique and differentiated opportunity. We think this is a company that investors need to be watching in 2019. To receive updates on Namaste, please email support@technical420.com