Namaste Technologies Inc (OTCMKTS:NXTTF) reported YoY growth of 16% in revenues to $5.3 million in Q1. Its subsidiary CannMart Inc posted robust revenues of $1.3 million (up 798%).
Continues to attract the finest brands
CannMart is attracting premium brands, provincial agencies, and value-added suppliers because of its expertise in packaging, production, e-commerce, and distribution in this regulated and competitive industry. Its product catalog improved in B2C and B2B channels. The company also strengthened its competitive edge in cannabis 2.0. CannMart increases product offerings on its website.
Offerings through B2B channels
CannMart offers Kief, a high-value cannabis brand, through its B2B channel. Namaste holds a minority stake in Kief besides purchase rights for certain products. CannMart also sells batteries, vaporizing pen cartridges, cannabis tincture bottles, and cannabis capsules through B2B channels.
CannMart inks supply pact with AGLC
CannMart entered a supply pact with AGLC (Alberta Gaming, Liquor & Cannabis). It is the fifth provincial client from the government for Namaste.
CEO of Namaste, Meni Morim said changes incorporated in corporate structure and business strategy helped the company to report improved performance. He said CannMart played a vital role in its Q1 performance. Revenues of Namaste improved in Q1 this year compared to the same period last year. The company is showing improvement in the B2B segment.
CannMart is posting significant growth because it entered into the new markets and attracted well-known and innovative brands. The company expects to post better than expected results going forward considering the legal cannabis industry’s prospects and being a leading player in the distribution, production, and development of consumer packaged goods.
Namaste will continue to expand its cannabis products, and the brands will drive its sales. The company is associating with brands such as Phyto Extractions and IGNITE to improve their client base in the legalized cannabis market within Canada.
Namaste expects that market for cannabis 2.0 products will mature soon with the introduction of brand and new products. It expects to realize higher margins and improved customer base from this market compared to leaf derived products.
Namaste adopted several safety measures to ensure the upbeat health of its vendors, employees, and partners and mitigating the impact of coronavirus on its business.