Namaste Technologies (TSXV:N) Is a Cheap Pot Stock With Huge Upside Potential

Namaste Technologies (TSXV:N) is a Vancouver-based e-commerce cannabis company. Namaste’s stock price got off to a good start in 2019 but dropped after the company was hit by some scandals.

The company is recovering from a restructuring of management following the firing of CEO Sean Dollinger in February for alleged breach of his fiduciary duty to the company. In March, the company’s PwC auditor resigned, and Namaste couldn’t meet his filing deadline of March 31, 2019.

On August 26, Namaste appointed Meni Morim to the position of CFO and board member. This announcement was welcomed by investors and gave a boost to the stock price.

The Amazon of the cannabis market

Namaste, through its subsidiaries, sells cannabidiol (CBD) products, sprays, glassware, growing equipment, hemp, clothing, and accessories. It’s a one-stop shop for cannabis.

This cannabis seller is unique, as it focuses on the consumer retail segment. Namaste operates the largest cannabis e-commerce platform in the world, with more than 30 websites in more than 20 countries under many brands. These sites attract more than 600,000 visits per month and have a database of about 1.5 million users. Canadian cannabis producers can sell their products on this e-commerce platform.

With NamasteMD.com, the company’s integrated telemedicine application, Namaste connects medical service customers and healthcare practitioners to more easily deliver and renew cannabis prescriptions online.

Namaste has the ambition to become the Amazon of the cannabis market — that is to say, a world leader in the e-commerce cannabis industry.

A cheap stock with big potential

Namaste is a bargain at its current price, and there is big potential on the horizon.

Namaste may well experience revenue growth in the coming quarters. Not only is the global cannabis market expected to grow significantly, but Namaste also has two smart acquisitions likely to return.

It has acquired a 49% stake in Pineapple Express Delivery, a Manitoba-based medical cannabis delivery company. The stated goal of this agreement is to add urgent delivery options to products from Namaste’s subsidiary brands.

Namaste has also recently entered the pot edibles market with a 49% stake in Choklat, a Calgary-based fine-chocolate maker.

Choklat is the largest premium chocolate manufacturer in Canada, with a strong presence in the luxury chocolate market in Western Canada (approximately 70 different retailers). In addition to a strong network of distributors across Canada, Choklat sells its products on its e-commerce website and has established a supply relationship with Sobeys.

The acquisition of Choklat will allow Namaste to infuse THC or CBD into Choklat’s products and sell them as edible products. Choklat has a supply contract to buy cannabis extracts from Namaste, which is awaiting a licence for its extraction facility called CannMart Labs, and has the capacity to make 16,000 bars and 38,000 sugar packets daily.

Once licensed by Health Canada, cannabis-infused chocolate will account for 80-90% of Choklat’s sales.

Namaste’s acquisition could be a smart move for the company, as the edible market is expected to be very lucrative.

According to Deloitte, the sale of cannabis-infused foods as well as beverages, vapes, and topicals is expected to reach $2.7 billion a year in Canada within the first few years of legalization.