As the Canadian market prepares for the anticipated rise in the demand for recreational cannabis post its legalization in October, Namaste Technologies, (CVE:N), a leading online retailer of ancillary hardware cannabis products, is busy spreading its roots in the online cannabis market. Just like the large cannabis producers, Namaste’s stock has surged, rising from $0.21 per share in November 2017 to $3.55 per share at present. However, the company hasn’t stopped growing, and aims to become the “Amazon of Cannabis” in the coming years. For this, the company announced the pre-launch of an artificial intelligence-driven medical cannabis marketplace – CannMart.com – which will enable it to procure and sell medical cannabis from both domestic and international cultivators. In this note, we discuss how this move will augment Namaste Technologies’ plans to become the “Amazon of the Cannabis Market.”
We currently have a price estimate of $7.00 per share for Namaste Technologies, which is higher than its market price. View our interactive dashboard – Namaste Technologies’ Price Estimate – and modify the key drivers to visualize the impact on its valuation.
Global E-Commerce Company In Cannabis Space
Namaste Technologies is a Vancouver-based online retailer of medical cannabis vaporizers and smoking accessories. The company is one of the largest online retailers of cannabis delivery systems, operating through its 32 e-commerce sites in over 20 countries and distribution hubs located across the globe. The company’s websites have over 600,000 monthly visits with a database of approximately 1.5 million users. The company has a strong presence in the UK, Canada, and Germany and holds a large chunk of the online cannabis markets in Europe and Australia. With the growing demand for medical cannabis products, the company is catering to the emerging markets such as Brazil, Mexico, and Chile through a number of new supply channels.
CannMart.com Will Establish Namaste As A One-Stop-Shop For Cannabis
In 2017, Namaste Technologies had acquired CannMart Inc., a Canada-based late-stage applicant for a medical cannabis sales-only license under Health Canada’s Access to Cannabis for Medical Purposes Regulations. The acquisition was a strategic decision, taken to strengthen Namaste’s e-commerce and logistics platform and enable it to become a leader in retail distribution of medical cannabis in Canada.
In the quest to achieve this objective, Namaste announced the pre-launch of a medical cannabis online marketplace – CannMart.com – earlier this week. The company has launched this marketplace, given its expectations that its subsidiary, CannMart, will receive its sales-only license in the coming months. Once this milestone is achieved, Namaste will be able to procure and sell medical cannabis from both domestic and international Health Canada approved cultivators and offer them on an AI-driven e-commerce marketplace designed to provide a unique and personalized experience to each patient.
AI-driven Marketplace And Strong Network Of Suppliers Will Drive Sales
Namaste will incorporate the advance e-commerce AI from its existing technology platform – NamasteMD, Canada’s first fully integrated patient consultation portal, to create a personalized user experience for every patient ordering through CannMart.com. In addition, the company will further integrate the AI technology and expertise of Findify, a leading e-commerce AI company that Namaste had acquired in May 2018, into the new platform. Furthermore, the company plans to leverage the database of over 1.5 million customers to expand its presence in the online cannabis market in Canada and gradually across the globe. Apart from this, Namaste has secured a network of suppliers and holds an inventory of high-quality medical cannabis flower and oil, which will be immediately available for sale once CannMart receives its sales-only license.
Namaste’s existing platform is known for its safe and reliable distribution of cannabis and is in line with the current provincial and federal guidelines for sale of cannabis within Canada. The new marketplace will enable Namaste to become a one-stop-shop for medical cannabis consumers in Canada by offering both cannabis consumables as well as ancillary products on the same platform. Thus, we expect CannMart’s sales-only license, coupled with an AI-driven marketplace to sell cannabis products, to solidify Namaste’s position as the leader in the cannabis e-commerce market and establish it as the “Amazon of Cannabis” in the coming years.
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Can Canadian Online Cannabis Retailer Namaste Technologies Become The Amazon Of Cannabis? ForbesFull coverag […]