Namaste stock is one of the biggest gainers in the cannabis sector after Namaste Technologies (TSXV:N) (OTCQB:NXTTF) announced that Choklat Inc has received a processing license from Health Canada to produce a line of chocolate bars, drink mixes, and infused sugar.
Over the course of the past few months, cannabis e-commerce company Namaste Technologies has emerged as one of the most remarkable turnaround stories in the industry. It has gone from strength to strength over the past few months through strategic deals, and today, the company made another important announcement.
Namaste announced that Choklat, in which it holds a 49% stake, has managed to get a processing license from the cannabis regulator Health Canada. Choklat is a chocolatier and is best known for manufacturing craft chocolate products. It is a significant development for Namaste since it will allow Choklat to manufacture new lines of products.
According to reports, Choklat is now going to manufacture cannabis-infused drink mixes, infused sugars, and chocolate bars, which puts Choklat in a prime position for the cannabis 2.0 market.
After the news, Namaste stock soared 15% at C$0.39.
This development will likely also mean that Namaste’s product catalog is going to get a major boost. The adult-use cannabis market in Canada is expected to grow to C$2.4 billion in 2020, and Namaste Technologies is working towards expanding its product offerings accordingly.
Partnership with Phyto
Back in December, the company signed a partnership with Phyto, by way of which Namaste’s CannMart marketplace will be selling Phyto-trademarked products. Phyto is one of the better-known names in the cannabis industry, and the addition of its branded products to CannMart is an important development for both parties.
Prior to that, Namaste Technologies also clinched the right to distribute Trec Brands’ premium products in the provinces of Ontario and Saskatchewan.
The company also does business with local governments, and in November, it had signed wholesale cannabis supply contacts in Ontario and Saskatchewan. It already holds such a contract for British Columbia.
Namaste stock has gained over 285% since the beginning of this year.
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