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Namaste Technologies: Cannabis E-Commerce Pure-Play

May 02, 2018 6:18 PM ETLifeist Wellness Inc. (LFSWF), LFST:CA37 Comments
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Cornerstone Investments


  • Namaste is currently an online vaporizer seller with plans to also become a pure seller of cannabis relying on third-party products.
  • Lack of in-house production limits potential market to medical only, leaving the larger recreational market off the table.
  • Tough competition for CannMart from pharmacy chains entering the medical cannabis space and Shopify's appeal to producers.
  • We rate the shares speculative buy based on the stable and profitable vaporizer business and risky foray into cannabis e-commerce.

Welcome to our Discover Cannabis series, where we publish in-depth research reports to introduce new companies not covered by us before.


We have spent lots of time introducing cannabis companies most of which are licensed producers. Namaste Technologies (NXTTF) is a unique proposition in the cannabis space where the company is currently a global e-commerce player in the vaporizer business and is pivoting towards becoming a pure-play e-commerce merchant in the medical and recreational cannabis markets in Canada and globally.

Our view of the company is speculative buy because it has become somewhat clear to us that Namaste's only real operation at the moment is its vaporizers business. Its plans to break into the cannabis market are still under development but some progress has been made. Investors have cheered its unique angle in the cannabis sector and the enthusiasm has lifted the share price to a certain extent. We just think investors should recognize that the company has yet to demonstrate the success of its business model and products which makes this investment inherently risky and speculative.


Namaste has three business lines: vaporizer sales, NamasteMD, and CannMart. On a high level, the vaporizer business is a standalone business that operates e-commerce platform across dozens of global markets. The NamasteMD application is the customer acquisition portal for Namaste's cannabis e-commerce platform, CannMart, and with both together represent the medical and recreational cannabis business of Namaste.

(Company Website)

Vaporizer: At its roots, Namaste is an online retailer of vaporizer equipment in several countries. How big is this business line? For the 2017 fiscal year that ended on August 31, 2017, the company sold $6.7 million of equipment excluding the acquisitions it made including Australian Vaporizers, EDIT, and VaporSeller. Including contributions of all the acquisitions, the company generated sales of $11 million. Sales grew a healthy 92% during the year excluding acquisitions. For the latest

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