Namaste Technologies Inc. (OTCQB:NXTTF) (CNX:N) has been seeing a fairly steady increase in its stock price throughout December, resulting from its many signings and agreements with licensed cannabis producers, all of which are helping to push Namaste closer and closer to its goal of becoming Canada’s largest online retailer for medical cannabis.
Most recently, Namaste announced that it had signed a Letter of Intent (LOI) with BRLEV AGRICULTURAL CROPS LTD. (private). The LOI indicates that BRLEV will begin to supply one of Namaste’s subsidiaries, Cannmart Inc., with high-quality medical cannabis. What is unique about this deal is that BRLEV is operated out of Israel and is one of Israel’s largest licensed producer of medical cannabis. Namaste believes that there will be a growing demand for imported cannabis, beyond just that for domestic cannabis, which has yet to be fully tapped by any other local company – and Namaste intends to be one of the first. By providing its customers with both domestic and international blends, Namaste is giving itself an upper hand in this highly competitive market space.
Evidently, investors are seeing the light of this decision as well, given that Namaste’s stock has experienced an increase of 11%, rising $0.25 to where the stock is sitting at the time of writing, $2.61, up from the previous close of $2.36.
Namaste has experienced several price jumps in the past few weeks, marking its climb throughout the month. Each of these jumps can be linked to an announcement made by the company, which were all along the same lines as the announcement made today of the company’s deal with BRLEV.
Earlier in the month, Namaste signed another LOI, this one with Supreme Pharmaceuticals Inc. (TSXV:FIRE), announced on December 18. Supreme has agreed to supply Cannmart with high quality dried cannabis flower for Cannmart to sell. This announcement corresponded with a jump in Namaste’s stock from $0.98 to $1.32.
On December 22, Namaste announced that it had signed a Fulfilment Services Agreement with Greenlane Canada (private) which dictates that Greenlane will be fulfilling all orders placed for any of the products sold by Namaste on its Canadian websites. This announcement led to a stock jump for Namaste from $1.77 to $2.10.
Why should these announcements be causing Namaste stock to continue climbing (climbing, in fact, to its highest point in the company’s history)? Because each of these moves by Namaste more firmly plants the company within the cannabis sector, which is an industry that is already steadily growing (and the companies connected to it along with it) and is set to skyrocket over the course of the next few years, especially in Canada once the federal government legalizes the recreational use of cannabis next summer. With each of these agreements, Namaste increases and diversifies its cannabis supply, placing it in a strong position to become a top seller once the cannabis market starts really kicking off.
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