Namaste Announces the Addition of Indiva Products to CannMart
Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF), a leading online platform for cannabis products, accessories, and responsible education, today announced its wholly-owned subsidiary, CannMart Inc. (“CannMart”), has signed an agreement with Indiva Inc., a wholly-owned subsidiary of Indiva Limited (“Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), a leading Canadian producer of cannabis edibles and […]
Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF), a leading online platform for cannabis products, accessories, and responsible education, today announced its wholly-owned subsidiary, CannMart Inc. (“CannMart”), has signed an agreement with Indiva Inc., a wholly-owned subsidiary of Indiva Limited (“Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), a leading Canadian producer of cannabis edibles and other cannabis products, to offer a selection of Indiva’s products on CannMart’s B2C distribution channel for their medical customers.
“CannMart is increasing its reach into the legal Canadian cannabis market and is a natural choice for our award winning products,” said Niel Marotta, President and CEO, Indiva Limited. “Our softgels and capsules are highly regarded for their consistency and quality and will be available on the CannMart marketplace in late August. Later this fall we look forward to introducing our award-winning Bhang® Chocolate and Wana™ Sour Gummies to the CannMart product universe.”
“Indiva’s CBD Softgels, Indica Capsules along with Bhang® Chocolates and Wana™ Sour Gummies are a great addition to CannMart,” said Meni Morim, CEO of Namaste Technologies Inc. “We have made tremendous inroads in both the medical and recreational sales channels and the investment we made in our processing and distribution facilities has allowed us to expand our presence within the legal Canadian cannabis market. As we add more high-quality Cannabis 2.0 products from leading companies like Indiva, we look to drive additional customers, suppliers and revenue to CannMart. We are excited to add these high quality, innovative products to our Cannabis 2.0 category and will work with Niel and his team to grow the Indiva product offering on CannMart.”
Indiva is a licensed producer of premium cannabis and cannabis products, and a provider of production and manufacturing services to third parties. Its state-of-the-art facility in London, Ontario includes environmentally-conscious grow rooms and a production and manufacturing space that produces safe, high-quality cannabis products. Indiva produces and distributes high-quality and award-winning Bhang® Chocolate, Wana™ Sour Gummies, Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt, and other derivative products through license agreements and joint ventures.
Namaste is adding Indiva’s product line to CannMart, its online marketplace, as it continues to expand its Cannabis 2.0 product offering. CannMart is an online marketplace carrying a large selection of legal cannabis products and accessories from many of the best cannabis producers in Canada and around the world. It is focused on providing medical cannabis patients and adult-use enthusiasts with access to the highest quality cannabis products available. CannMart also prepares, packages and distributes cannabis products through strategic relationships with leading government agencies.
Annual General Meeting
Shareholders are reminded that the Company will be holding its annual general meeting (“AGM”) in virtual online format only at 2:00 p.m. on Tuesday, September 29, 2020. Meeting materials are expected to be delivered and filed shortly which will provide details on how to attend and vote at the AGM. The Company is relying on the exemption in Ontario Instrument 51-504 Temporary Exemption from Certain Requirements to File or Send Securityholder Materials and equivalent blanket orders granted in other jurisdictions where the Company is a reporting issuer for the delay in complying with the annual request form requirement, the executive compensation disclosure requirement and the send-on-request requirements (as those terms are defined in the blanket orders), which will be complied with when the meeting materials for the AGM are delivered and filed.
About Indiva Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, and edible products and provides production and manufacturing services to peer entities. In Canada, Indiva produces and distributes the award-winning Bhang® Chocolate, Wana™ Sour Gummies, Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt and other Powered by INDIVA™ products through license agreements, partnerships and joint ventures. For more information please visit: https://www.indiva.com/
About Namaste Technologies Inc.
With headquarters in Toronto, Canada, Namaste Technologies is a leading online platform for cannabis products, accessories, and responsible education. The Company’s ‘everything cannabis store’, CannMart.com, provides customers with a diverse selection of hand-picked products from a multitude of federally-licensed cultivators, all on one convenient site. Namaste’s global technology and continuous innovation address local needs in a burgeoning cannabis industry requiring smart solutions.
Information on the Company and its many products can be accessed through the links below:
FORWARD-LOOKING INFORMATION – This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen. The forward-looking information contained herein, including statements related to the expected availability of Indiva’s products on CannMart’s B2C distribution channel and the Company’s ability to add more high-quality Cannabis 2.0 products in the future to drive additional customers, suppliers and revenue to CannMart, is made as of the date of this press release and is based on assumptions management believed to be reasonable at the time such statements were made, including management’s perceptions of Namaste’s standing in the online marketplace for cannabis products, management’s perceptions of Indiva, its products and its standing in the cannabis industry, the expectation by management that Indiva’s brand awareness among Namaste’s existing and new customer base will drive sales, the expected demand for Cannabis 2.0 products and the growth of that market future growth, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: risks relating to the Company’s ability to execute its business strategy and the benefits realizable therefrom, risks specifically related to the Company’s operations, and risks relating to the market price of Namaste’s common shares. Additional risk factors can also be found in the Company’s current MD&A and annual information form, both of which have been filed under the Company’s SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.
Will BevCanna Be Able To Compete Long Term With The Likes Of HEXO Corp. and Canopy Growth?
After staying quiet for several months, BevCanna Enterprises Inc. (BEV.CN) (BVNNF) has been busy and has reported three separate announcements this week. One of the most important developments to be reported by BevCanna was the completion of trial production runs of its exclusively licensed line of Keef Beverages as well as the white-label beverages it […]
After staying quiet for several months, BevCanna Enterprises Inc. (BEV.CN) (BVNNF) has been busy and has reported three separate announcements this week.
One of the most important developments to be reported by BevCanna was the completion of trial production runs of its exclusively licensed line of Keef Beverages as well as the white-label beverages it is producing for State B Beverages.
BevCanna produced and evaluated multiple formulations (i.e. sparkling water, tea-based and soda formats) and multiple bottling formats. The company conducted tests on shelf stability and we are favorable on the thoroughness of the pre-production process. BevCanna plans to start product commercialization by the first quarter of 2021, assuming that it is granted the necessary processing licenses.
Another key development is related to strengthening BevCanna’s balance sheet. The Canadian cannabis beverage company recently received a $750,000 capital injection from a private placement as well as $500,000 from the exercising of 1.5 million stock options by the senior management team.
The other announcement from BevCanna was related to the addition of retail beverage marketer Donald Wood to the company’s independent advisory board. The company expects him to bring a wealth of sales and marketing experience in the beverage sector to the business and we will monitor the impact that he has on the operation.
Currently, BevCanna is trading at $0.27 and we are favorable on the management teams’ decision to exercise the stock options. We are of the opinion that this shows that the management team has confidence in the operation and considers it to be undervalued.
The funds are being used to prepare BevCanna’s industry-leading high-capacity beverage manufacturing facility for the granting of a standard processing license from Health Canada. Prior to the financing announcement, BevCanna was trending higher and was building momentum. We believe that BevCanna is an opportunity to be aware of following the recent developments and will keep an eye on how the story evolves from here.
If you are interested in learning more about BevCanna Enterprises, please send an email to email@example.com with the subject ‘BevCanna Enterprises’ to be added to our distribution list.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
Hemptown USA Has Built A World Class Platform To Capitalize On The Booming Hemp Industry
In early 2021, we expect Hemptown USA to complete a go-public transaction and this is an opportunity that our readers should be aware of. We have been covering Hemptown since 2018 and are impressed with how the story has evolved during this time. In early 2017, Hemptown started to cultivate feminized hemp and is considered […]
In early 2021, we expect Hemptown USA to complete a go-public transaction and this is an opportunity that our readers should be aware of. We have been covering Hemptown since 2018 and are impressed with how the story has evolved during this time.
In early 2017, Hemptown started to cultivate feminized hemp and is considered to be a leading player in the cannabigerol (CBG) market. When we first met with Hemptown’s management team, the company was one of the few businesses to be focused on CBG and we are favorable on this focus.
Hemptown’s management team has a proven track record of success and is comprised of executives that previously worked at Fortune 500 companies (Intel and Kelloggs). We are favorable on how the management team has been able to make Hemptown standout in what has become a saturated market.
Positioned to Capitalize on the Current Market Environment
One of the reasons we are favorable on the opportunity is related to the infrastructure that has been put in place. Currently, Hemptown’s state-of-the-art FDA registered and cGMP certified facility is operating at 30% capacity and we expect this percentage to increase in 2021. Many of the company’s competitors are running out of capital and we have seen several CBD and CBG companies file for bankruptcy.
Last year, Hemptown raised $24 million through a series of private placements and has been cutting costs to conserve capital. This has left the business in a strong position to execute and we expect the company to record strong revenue growth as it ramps up capacity.
Another reason we are excited about Hemptown is related to how the business has evolved. The company has launched a line of hemp cigarettes that do not contain any nicotine and are made with CBD and CBG that is from its Oregon farm.
We have considered the hemp cigarette vertical to be an attractive market and are favorable on how Hemptown has differentiated its product line from what is currently available on the market. The products include a proprietary terpene infused filter that is available in a variety of flavors and we are favorable on this aspect of the story.
In a report from Cowen and Company, the US hemp industry is expected to be a $16 billion market by 2025. The passing of the 2018 US Farm Bill was a major catalyst for the cannabinoid market as it opened the door for an era of CBD commoditization. Following the passing of the bill, major retailers like Walgreens and CVS have entered the industry.
The surge of interest in the CBD market led to an even larger increase in the amount of production that companies had in place. This put substantial pressure on the price of CBD and high-profile operators like GenCanna (backed by Mitch McConnell) were forced to file for bankruptcy.
By being focused on multiple cannabinoids and by conserving cash, Hemptown has been able to survive the current market environment. We expect this aspect of the story to play an important role in how the business continues to grow and believe that Hemptown is an operator to be aware of.
We believe that the next phase of growth for the market will be related to a surge in interest in cannabinoids like CBG, cannabichromene (CBC) and cannabidivarin (CBDV). We believe that Hemptown is positioned to be a beneficiary of this growth and will monitor how the story continues to evolve.
Executing on a Multi-Faceted Growth Strategy
Last year, Hemptown acquired Kirkman which is an established brand that has been in business for more than 70 years. Kirkman operates out of a facility that is FDA licensed and cGMP certified. When the acquisition was reported, we became increasingly excited about the opportunity and believe that Kirkland has played a key role how Hemptown has launched products.
By using state-of-the-art equipment for precision dosing, Hemptown has been able to create a diverse product line that includes tinctures, capsules, creams, topicals, gums, and edibles. The focus on being vertically integrated could increase margins by up to 20x and we are bullish on the impact that the facility has had on the economics of the business.
On top of selling its own product line, Hemptown offers white label products and we are favorable on the structure of the business. These products use premium cannabinoids and are fully traceable from seed-to-bottle. Hemptown’s white label platform is a full service offering that includes branding, fulfillment, and marketing services.
By operating a business model that has diversified revenue streams, Hemtown has been able to protect itself from decreasing CBD prices. The business model is based on margins and this is a key metric to be focused on. The strategy allows Hemptown to monetize inventory in multiple channels that are based on the demand and margins.
The saturation of the CBD market has substantially raised the cost of the end-consumer. Hemptown’s ability to sell to businesses and to consumers has protected margins while also being able to scale revenue. We believe that the strategy will allow Hemptown to efficiently monetize inventory and will monitor how the management is able to execute on this.
Focused on the International Opportunity
Another major potential growth driver for Hemptown is the expansion into the European Union (EU). Hemptown is pursuing a FSA license in the United Kingdom for its CBD and CBG products as well as bulk ingredients. The opportunity in the EU is massive and this is a market that we have been bullish on for several years.
Currently, Hemptown is in advanced discussions to partner with an established European supply chain that will provide it with the opportunity to move over 1,000 kilograms of CBD per month. We are favorable on the potential revenue that is associated with the relationship and will monitor how the company is able to capitalize on the EU market.
A Private Opportunity to be Aware of
Hemptown has attractive growth prospects and plans to make additional acquisitions to scale the business. The management has used a series of organic and inorganic growth initiatives to bring the business to where it is today.
We are favorable on the types of acquisitions that Hemptown has made and expect an additional acquisition to immediately prove to be accretive. We have faith in the management team’s ability to identify a business that would be complementary to the existing assets in place and are bullish on the potential impact it would have.
In early 2021, Hemptown plans to go public and this is an opportunity that we are closely following. If you are interested in learning more about Hemptown, please send an email to firstname.lastname@example.org with the subject “Hemptown” to be added to our distribution list.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
Aurora Cannabis Obtains Receipt for Final Base Shelf Prospectus Reiterates Fiscal Q1 Guidance
Aurora Cannabis Inc. (the ” Company ” or ” Aurora “) (NYSE | TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today announced it has filed and been receipted on a final short form base shelf prospectus (the “Shelf Prospectus”) with securities regulators in each of the provinces of Canada , except […]
Aurora Cannabis Inc. (the ” Company ” or ” Aurora “) (NYSE | TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today announced it has filed and been receipted on a final short form base shelf prospectus (the “Shelf Prospectus”) with securities regulators in each of the provinces of Canada , except Quebec , and a corresponding shelf registration statement on Form F–10 (the “Registration Statement”) with the United States Securities and Exchange Commission (the “SEC”).
The filing of the shelf prospectus is expected to provide financial flexibility to execute against previously stated business objectives. The Company expects to be in full compliance with all financial covenants as at September 30, 2020 under our amended and restated credit facility. Aurora’s relationship with the lending syndicate remains strong and there are no new obligations to repay any portion of the credit facility until its stated maturity date.
Following the divestiture of non-core subsidiaries during fiscal 2020, net revenue for the three months ended September 30, 2020 are expected to be comprised almost entirely of cannabis net revenue and expected to be at the high end of our previously announced $60 million to $64 million range, compared to $67.5 millionin Q4 2020. The Company also expects adjusted gross margin before fair value adjustments on cannabis net revenue to be at the high end of our previously announced 46%-50% range.
SG&A costs (including R&D) for the three months ended September 30, 2020 are expected to be in the low $40 million range after excluding certain one-time contract and employee termination costs. Aurora continues to expect to achieve positive adjusted EBITDA in the second quarter of fiscal 2021.
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta , Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company’s brand portfolio includes Aurora, Aurora Drift, San Rafael ’71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and Reliva CBD. Providing customers with innovative, high-quality cannabis products, Aurora’s brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched. For more information, please visit our website atwww.auroramj.com .
Aurora’s Common Shares trade on the TSX and NYSE under the symbol “ACB”, and is a constituent of the S&P/TSX Composite Index.
Forward Looking Statements
This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (” forward-looking statements “). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements made in this news release include statements regarding: the Company’s goals of achieving positive Adjusted EBITDA and positive free cash flow. These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions, estimates and assumptions of management in light of management’s experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the ability to maintain SG&A costs in line with current expectations, the ability to achieve high margin revenues in the Canadian consumer market, the current and future regulatory environment and future approvals and permits. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements, including the risks associated with: entering the U.S. market, the ability to realize the anticipated benefits associated with the acquisition of Reliva, achievement of Aurora’s business transformation plan, general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition, the effects of and responses to the COVID-19 pandemic and other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual information form dated September 24, 2020 (the ” AIF “) and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC’s website at www.edgar.gov . The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
The Company uses financial measures regarding itself, such as Adjusted EBITDA, that do not have standardized meaning under the International Financial Reporting Standards (” IFRS “) and may not be comparable to similar measures presented by other entities (” non-IFRS measures “). Further information relating to non-IFRS measures, is set out in the Company’s management discussion and analysis for the three and twelve months ended June 30, 2020 and 2019 under the heading “Cautionary Statement Regarding Non-GAAP Performance Measures” and the “Revenue” section for reconciliation to the IFRS equivalent.