Namaste stock is in the green on Tuesday after Namaste Technologies (TSXV:N) (OTCQB:NXTTF) announced that it has signed two supply agreements with the provinces of Ontario and Saskatchewan for the resale of its cannabis products through its flagship CannMart website.
Further Provincial Expansions Boost Namaste Stock
Namaste stock had been having a difficult time as of late, with pot stocks stuttering across the board; however, the expansion of the company's provincial business channels has provided some reprieve for investors and places Namaste in an excellent position to capitalize on the cannabis 2.0 market. "Working directly with the provincial governments represents a significant market opportunity for us," said Meni Morim, CEO of Namaste Technologies Inc. "We look forward to being part of the value chain for OCS and SLGA as we expand our presence in this sector."
Today's announcement follows on from news in September that the British Columbia Liquor Distribution Board (BCLDB), the cannabis authority in BC, had placed a substantial order for pre-rolled products from CannMart. Pre-rolled products were legalized in the first wave of cannabis legislation last year, meaning the company did not have to wait for the 2.0 market for these products to hit the shelves of government retailers in BC. Namaste stock jumped 10% following news of the order.
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Solid Third Quarter Results
Despite suffering some heavy losses in the freshman year of legalization, due in large part to a slumping market and a scandal earlier in the year that led to the ousting of former CEO Sean Dollinger, Namaste stock looks to have put its troubles behind it under the new leadership of Meni Morim. The cannabis e-commerce firm, which operates over 20 websites in 20 different countries, posted solid Q3 revenue in October despite a difficult few months.
For the third quarter ended August 31, Namaste Technologies reported consolidated revenue of $3.8 million CAD, despite discontinuing several of its various websites, while gross margin also improved from the previous year. Namaste stock is currently trading up 8.3% at $0.31 following today's announcement and could be one pot penny stock to watch in 2020.
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