Namaste Technologies Inc. (TSXV:N), one of the Canadian marijuana stocks, said it has signed a medical cannabis supply agreement with RMMI Corp.’s (CSE:RMMI) Rocky Mountain Marijuana subsidiary
SmallCapPower | October 31, 2018: Namaste Technologies Inc. (TSXV:N), one of the Canadian cannabis stocks, Monday announced that it has signed a medical cannabis supply agreement, via its wholly-owned subsidiary Cannmart Inc., with RMMI Corp.‘s (CSE:RMMI) wholly-owned subsidiary, Rocky Mountain Marijuana Inc. (RMMI). According to the supply agreement, Cannmart will buy medical cannabis products from RMMI to offer on its online platform. Also, Cannmart will have the right of first refusal (ROFR) on 20% of RMMI’s gross production.
Cannmart is the first non-cultivator to have a sales-only license with the objective to offer a unique selection of high-quality cannabis products sourced from Licensed Producers across Canada. Through the supply agreement, Cannmart will purchase packaged, pre-labeled and tested products from RMMI and, subsequently, offer it for sale on its online platform.
Namaste Technologies President and CEO Sean Dollinger remarked, “We’re pleased to announce this Agreement with RMMI and have a lot of confidence in their management team. Having now received Cannmart’s sales license and with the closing of our bought-deal financing, we believe that we are in a strong position to execute our strategy of creating Canada’s leading cannabis e-commerce platform. By leveraging our technology platforms, expertise in e-commerce and incredible customer service, our focus is on providing a unique and personalized user experience.”
In another development, Namaste Technologies said it has signed a patient services agreement with Buds2go.ca through the Company’s wholly-owned subsidiary, NamasteMD Inc. An online platform, Buds2go has ~80,000 users in its database with over 100,000 weekly sessions. Through the agreement, Buds2go will provide access to users for medical cannabis consultations through the Company’s online patient portal, NamasteMD Inc. This move by Namaste is aimed to increase the patient base as Buds2go not only has a large database of users but also has strong organic search traffic rankings. In turn, Buds2go will capitalize on NamasteMD’s platform by offering its users the option of an easy platform for medical cannabis consultations with a trained professional. Apart from pursuing a growth expansion strategy, Namaste is focused on broadening its product portfolio and securing a robust supply chain for the future.
Namaste Technologies CEO Dollinger added, “Buds2go maintains a large database of users and is one of the highest-ranked e-commerce sites targeting keywords related to many popular cannabis strains. We’re looking forward to seeing positive results. We believe that NamasteMD offers itself as a powerful resource that provides users with access to order medical cannabis products through the regulated market.”
Namaste Technologies operates the largest global cannabis e-commerce platform with over 30 websites in more than 20 countries under various brands. The Company’s stock currently trades at a market capitalization of C$510.06 million on the TSXV with a price-to-book multiple of 6.85x and a price-to-sales ratio of 27.54x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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