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Sunday, November 27, 2022

Namaste Technologies Inc. (OTCMKTS: NXTTF) Soars on $51.7mm Financing

Namaste Technologies Inc. (OTCMKTS: NXTTF) is back on track after closing the bought deal financing including full exercise of over-allotment option for gross proceeds of $51,750,000. This is huge news for Namaste.

A total of 17,250,000 units of the Company were sold at a price of $3.00 per Unit, The Offering was completed by a syndicate of underwriters led by Eight Capital and Canaccord Genuity Corp. as co-lead underwriters and joint bookrunners, and including Laurentian Bank Securities Inc.

Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF)  has an ambitious vision to become the Amazon of medical marijuana. Namaste is led by avid Youtuber Sean Dollinger a serial entrepreneur with a history of founding and successfully operating several start-up companies mainly focused on e-commerce. Sean started selling vaporizers online and the business soon took off. Currently the Company has a huge web presence and international internet distribution network that records traffic from over 180 countries and directly reaches 26 countries in nine different languages. The company offers virtually all high end brand vaporizers. Some of Namaste’s websites include namastevapes.ca, namastevaporizers.co.uk, namastevaporizers.ie, everyonedoesit.com, everyonedoesit.co.uk, everyonedoesit.ca,namasteMD.com and grizzlyoriginals.com.

Earlier this year Cannmart received confirmation from Health Canada that it will be allowed to buy pre-packaged, labelled and tested cannabis products. This development was very significant for Cannmart in that it will eliminate the need for buying in bulk, testing and packaging which will significantly reduce overhead costs for Cannmart and thus increase gross profit margins. By allowing Cannmart to purchase pre-packaged medical cannabis products, the Company can remain focused on its areas of expertise in e-commerce and technology, and enable the Company to further expand on the products and services that can be provided through Cannmart.

Namaste vision for Cannmart is an online marketplace that provides a competitive landscape whereby the many hundreds of licensed producers and micro-cultivators can offer their high-quality products. Currently there are over over 100 Lps in Canada so whether Aphria is one of them or not does not seem to make much difference.

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Namaste hit a low of $1.50  after noted shorter Andrew Left of Citron Research tweeted that “Citron proves without a doubt the fraud being committed at Namaste Tech $nxttf. This $700 mil company will be a 0 one regulators and accountants read. The attack by Citron has resulted in 6 lawsuits to be filed by the law firms Bernstein, Brager, Bronstein, Open PR World, Rosen and Schall. Namaste responded on October 9 stating “The Company wishes to respond to these claims and inform shareholders that its NASDAQ application is progressing but has not yet been accepted or approved, that the Company’s sale of its US assets was not to a “related party” and was not a “related party transaction” as defined under applicable Canadian securities laws and that other assertions made by Citron are equally inaccurate and misleading. The Company intends on vigorously defending these claims.”

On October 25 Namaste announced it closed the bought deal financing including full exercise of over-allotment option for gross proceeds of $51,750,000. The Offering was completed by a syndicate of underwriters led by Eight Capital and Canaccord Genuity Corp. as co-lead underwriters and joint bookrunners, and including Laurentian Bank Securities Inc. The net proceeds of the Offering are expected to be used by the Company for inventory and supplies, capital improvements, personnel and facility operations, integration and expansion of e-commerce platforms and customer bases, and for working capital and general corporate purposes, as more particularly described in the Company’s final prospectus.

Now that the financing has closed Sean can make videos again. He was in Cuba looking at potential business opportunities and he tuned in from his hotel after missing the 420 show stating “We have been going through a quiet period, that means that we are not able to come out with announcements over the next couple of days, there is nothing material that has taken place but that doesn’t mean that we haven’t been working hard in the background, setting up new agreements, working on new opportunities that you will hear about in the next couple of weeks. From the bottom of my heart I want to thank every single one of you, for putting your trust and you believe in Namaste and at the end of the day you need to remember that I am still the single largest shareholder of this Company. Any decisions I make for any of us its in the best interest of the Company. I have no other reason not to be aligned with everyone of us. I work countless hours, travelling the world, I haven’t even heard of anybody speaking about opportunities in Cuba, meanwhile Namaste is here on the ground exploring, researching and looking for unique opportunities. If you think about the best products that come out of Cuba, if you think of what they are a leader in its very much in-line with the industry we are in and that’s what’s different about Namaste, we think outside the box, we are here doing shows like this to stay in touch with everybody.”

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Currently trading at a $455 million market valuation Namaste is fully funded going forward with $43.9 million $CAD war chest in the treasury, virtually no debt and fast growing sales reporting $14,627,161 in revenues more than double for the same period last year for the 9 months ended May 31, 2018. The stock is trading at a 50% discount to its recent highs due to Citron and the lawsuits that followed. It is important to note that the principals of Citron hold a short position in any of the securities profiled on the site and they have been wrong before. Namaste is an exciting Company very well positioned to cash in on the coming Canadian Cannabis craze; they are one of the largest online retailer for medical cannabis delivery systems globally operating e-commerce sites in over 20 countries with distribution hubs located around the world. Namaste has an ambitious vision to become the Amazon of medical marijuana and they have a competitive advantage in place with an already established web presence with domains that have been around for years. We will be updating on Namaste when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Namaste.

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Disclosure: we hold no position in Namaste either long or short and we have not been compensated for this article.

Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

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