Namaste stock has been on fire this week, with a gain of 25% due to growing optimism after the recent correction. Let's review the recent progress by Namaste Technologies Inc (TSXV:N) (OTCQB:NXTTF).
Corporate Restructuring for Namaste Stock
The marijuana sector is still a nascent one, and the industry has come up by leaps and bounds over the past few years. However, when it comes to creating a truly strong ecosystem, the industry has some way to go, and one of the companies that could well be a big part of it is Namaste Technologies.
The company, which is based out of Vancouver, is involved in providing online retail services in the cannabis space and delivers cannabis as well as accessories to its customers. However, it cannot be denied that the company has a tough few months after it had to go through corporate restructuring and saw its auditor PwC resign.
As everyone knows, online retail is something that is eventually going to come to the cannabis industry, and Namaste Technologies is one of the earliest to move into space. It is, in fact, the largest e-commerce operation dedicated to the industry. It operates as many as 30 different websites spread over 20 countries and currently boasts of a user base of 1.5 million.
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At the time of writing Namaste stock is up another 6% at $0.42 on the OTC market, extending its 17% gain achieved yesterday.
Additionally, the company has a marketplace that can be used by cannabis producers in Canada to sell their products. In other words, Namaste Technologies wants to be to the cannabis industry what Amazon is to the wider e-commerce space.
While it is true that the company, as well as the wider cannabis sector, has gone through hard times, there is no doubt that the service that Namaste offers is unique. Moreover, the cannabis sector is expected to grow exponentially in the long term and there lies the opportunity in Namaste stock as a company that could go on to become one of the biggest players in the industry. Since the company has a global presence already, it is not going to be bogged down by the issues with regards to the Federal legalization of marijuana in the United States either.
Having said all that, though, it's important to note that Namaste stock has fallen over 50% year-to-date.
Featured image: Canva
