Namaste Technologies Inc. (TSXV:N), one of the Canadian marijuana stocks, said its Cannmart subsidiary has received Health Canada’s first ACMPR sales-only license
SmallCapPower | September 26, 2018: Namaste Technologies Inc. (TSXV:N), one of the Canadian cannabis stocks, late Friday announced that its wholly-owned subsidiary, Cannmart Inc., has received its Access to Cannabis for Medical Purposes Regulations (ACMPR) medical cannabis sales only license – no cultivation – from Health Canada.
Cannmart is an online marketplace for the sale of medical cannabis, which is sourced from third-party licensed vendors. It has a strong cannabis supplier base, ranging from high-end craft strains to regular strains. Cannmart has over 13 domestic and international supply agreements, offering the largest and most diverse selection of medical cannabis products in the Canadian market. The sales license is a milestone for the Company as it is an important component for Cannmart to become Canada’s leading online platform for medical cannabis.
Recently, Health Canada allowed Cannmart to buy pre-packaged, labeled and tested cannabis products. This is a significant development as it allows Cannmart to improve its gross margins & bottom line as a result of reduction of overhead costs. Additionally, it provides an avenue for Cannmart to remain focused on its areas of expertise in e-commerce and technology, and further expand on the products and services that can be provided through its platform.
Namaste Technologies is the largest global online marketplace for cannabis consumption devices, with more than 1.5 million customers globally. The Company has a strong AI platform – Findify and a medical cannabis consultation NamasteMD, which is an effective customer acquisition platform. Medical patients acquired through NamasteMD will be able to onboard and purchase products through Cannmart.
Namaste has operations in more than 20 countries and consumer databases established in strategic regions including the United Kingdom and Australia. The license approval is of extreme importance to Namaste Technologies and its positive effects should be witnessed in its revenues going forward. The Company is well-positioned to expand on its cannabis platform in launching telemedicine and cannabis e-commerce platforms in global markets. Namaste Technologies trades at a market capitalization of C$1.05 billion with a price to book multiple of 14.55x. Shares of Namaste climbed 10% on the TSXV to close at C$3.74 on Monday.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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