Being a global leader in the cannabis industry, weed stock Namaste Technologies (TSXV:N) is familiar with being the center of attention. Today, December 17th, is no exception.
Namaste Technologies: More Than a Weed Stock
On Monday, Namaste Technologies, which operates in more than 20 countries, said it is purchasing an additional 34% equity stake in Pineapple Express Delivery. The total figure for the purchase is $3.1 million CAD. Earlier in 2018, the company acquired a 15% stake in Pineapple Express; this puts its current total to 49%.
With this deal, there are a few takeaways, including the fact that the weed stock plunged on the news.
First, Namaste Technologies has the right to purchase an additional 10% in Pineapple, which is a company that offers same-day delivery (recreational and medical) for Canadian licensed producers.
Second, once the deal is complete, Namaste Technologies will own a little under half of the company's shares.
And third, Namaste Technologies is already working with Pineapple Express. According to CEO Sean Dollinger, its subsidiary Cannmart is "now offering same-day delivery services in Toronto through Pineapple Express."
Namaste Technologies Stock: The Market Reacts
Now, Dollinger believes these sorts of strategic investments will "drive innovation," as well as "provide long-term value for the company." However, the weed stock is telling a different story today.
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As of 1:43 PM, and according to Yahoo Finance, the Namaste weed stock is trading at $1.21, putting it down 1.63%.
The company's US-listed shares are also down today and have plunged 60% in three months.
The Takeaway
The Namaste weed stock and the Vancouver-based company seem to be on different paths. However, if Dollinger's confidence in this recent strategic investment tells us anything, it's to not oust Namaste stock just yet.
Keep an eye on Namaste Technologies as we move into the new year. Stay vigilant for the company announcing an additional 10% stake in Pineapple Express as well.
Featured Image: depositphotos/AndreyPopov
