Namaste Technologies (TSXV: N) announced a significant milestone Monday morning, indicating that they had signed their first supply agreement with a government agency. The BC Liquor Distribution Branch will be the first provincial body in which Namaste’s CannMart sells products to after signing a purchase agreement for a number of preroll products.
While quantities were not specific within the news release, Namaste’s products will be available at retail locations as well as via the online provincial sales platform. The sale is significant for Namaste’s CannMart, who notably doesn’t have a cultivation or processing license. Rather, the firm is a licensed dealer of cannabis products within Canada, acting as an intermediary for many firms who have a cultivation license but not a sales license. These cultivators as a result are limited to business to business transactions with other licensed producers and dealers. CannMart provides a retail avenue for these firms, allowing them to generate revenues while they await final licensing from Health Canada.
It’s unclear what brands the product will be marketed under, and whether there will be a number of different products as a result of Namaste having a number of small suppliers.
Namaste indicated that it is currently working with other provincial distributors to obtain additional sales avenues.
Namaste Technologies closed Friday’s session at $0.49 per share.
Information for this analysis was found via Sedar and Namaste Technologies. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
