Namaste Technologies (OTCMKTS:NXTTF) CEO and Co-Founder Sean Dollinger started his company with the dream of making it a competitive e-commerce platform of the cannabis world. In an era where legalized cannabis has started to become a reality, Namaste is ready to light up its prospects and watch its e-commerce train take off.
Cannabis is clearly a promising field of the future, and Namaste has already commenced to capitalize ahead of its time. Amid acquiring company after company, from the key to Australia’s vaporizer online retail market to owning 26 e-commerce retail stores in 20 countries (in counting), Dollinger’s sharp-minded business venture is well on its path to breaking down barriers left and right.
Why is it high time for investors to take notice of this up-and-comer stock? For one, Namaste is about to start trading on OTCQB, with a business model that is quickly gaining on the coolness factor as more consumers transition from cigs to vapes. Namaste is pacing to swiftly claim the throne as the go-to e-commerce vaporizers and assorted distributor around the world.
I had a chance to discuss with Mr. Dollinger his future sights on prioritizing Canadian and Brazilian markets as well as his company’s exciting trajectory that seems to just be soaring through the roof. Let’s dive in:
Julie Lamb: Almost 2 years ago, Namaste was underway in its transition to being a publicly traded company. Can you provide some backstory as to how Namaste first spring into being?
Sean Dollinger: Great question. We started by rolling out vaporizers through our distribution network and were able to launch several sites across Europe, New Zealand and Australia simultaneously. This is what triggered the initial fast pace growth of the company from where we started. As we continued to grow, our capital requirements for our rapidly expanding inventory were becoming more demanding.
In order to access capital, grow, finance inventory and implement our roll-up strategy for acquisitions, we decided to take the company public. We did the through an RTO with an existing Canadian shell previously in the mining space. Since then, we’ve been able to grow our inventory domestically and abroad while following through on some really exciting acquisitions we’ve since brought on to the company.
JL: States like California, Nevada, Massachusetts, and Maine freshly opened some new windows for cannabis e-commerce, both recreationally as well as medically. With eight states worth of domestic consumers now legally able to recreationally consume cannabis, and the likelihood of future states to follow suit, how do you think this will position Namaste for long-term profitability?
SD: With continued support for legalization in various states, we expect to see increase in the market size. One benefit we have as well is that by selling vaporizers we are not limited jurisdictionally to one state or region. We grew our company by expanding and selling overseas in many countries.
The beautiful thing about it is that we will follow growth of the overall industry. However, since there are no barriers to entry for us in new markets, we are also not affected on the down-side and know that we’ll be able to continue selling regardless of what happens from a legalization front.
JL: How does your company intend to stand out as the market gets more competitive?
SD: For starters, we operate one of the most innovative e-commerce platforms that incorporates over 40 websites in 20 countries and 9 languages. We have staff that speak English, French, Dutch, Spanish, German, Italian, Hebrew- the list goes on.
I think that is what is most unique about our sales platform. Our globally diversified revenue stream also means that we have established a very strong database of cannabis users on an international scale. We see value in leveraging our data to grow the company further in the next 5-10 years.
JL: Just last month, Namaste finalized the acquisition of Australian Vaporizers, which gives the company access to control roughly 90% of the vaporizer online retail market. Namaste also officially has the e-commerce platform Vaporseller Earn-Out now under its belt from Haze, which you have pointed to as a reinvestment strategy move. Additionally, the company now has bought Cannmart to use as a warehouse to process vaporizer and medical cannabis shipments. What new partnerships and acquisitions can we expect as next on the horizon for Namaste?
SD: We’re feeling very comfortable where we are at now from an online retail perspective. We’ve established ourselves as the largest online retailer in the world in terms of volume with a robust platform. Our IT team is utilizing some of the latest technology including machine learning to adjust site content on the fly and optimize conversation rates. Our focus now will be to bring costs down, work on developing perfect integration and operations of our sites, and aim at becoming cashflow positive over the next several quarters.
The opportunity with Cannmart was very exciting as it is our first entry in to the consumables space in Canada, where we hold an existing database of customers that will have access legally to cannabis over the next year. This takes me back to the point about leveraging our data both here in the US and Canada, but overseas as well. We see this as being an effective strategy for growth in to a new sub-sector of our industry space.
JL: How have the relationships you’ve already built in the cannabis industry, and how do the future partnerships you hope to establish make Namaste a well-rounded e-commerce investment opportunity?
SD: We have definitely solidified ourselves as a very strong e-commerce business in the vaporizer and cannabis space, but also on a diversified global scale which is unique to our business in this industry. We represent several brands of retail sites as well as manufacturing and product development of innovative vaporizers and accessories. We’ve grown amazing relationships with the top manufacturers in the space as well as licensed producers in Canada- which is important, as we are focusing on building relationships with them.
JL: Just this last November, Namaste made waves as one on a short list in the cannabis industry to be allowed to distribute products through eBay. How will eBay help take you to the next level?
SD: Yes, that was very exciting news for us. Well established and popular sales channels like eBay in the past have not taken definitive positions on selling vaporizers through their platforms. We were very encouraged to be one of the first companies to be approved in the new Vaporizer category on eBay. With continued legalization and consumer awareness in the space, we believe the market will open further in the future to allow access to selling on additional sales channels.
JL: Your short-term priority is to land Namaste at the top of the retail e-commerce leaderboard for companies distributing vaporizers and accessories. You’ve emphasized acquisition moves as ways to further grow your company. What are your goals down the line for Namaste?
SD: As mentioned, we’ve now completed 4 acquisitions since going public and have yet to put out a quarter which includes all revenue from these acquisitions. Our goal is to always be improving our platform, sales and conversion rates, and we will continue to seek opportunities for organic and inorganic growth in the industry. Our focus now is also with licensed producers and distribution in the Canadian market in which we expect very high growth over the next 1-2 years. We’ll continue to expand and grow in our international and emerging markets like Brazil.
JL: What is the financial picture for the company? Will you have enough cash to keep up this pace of acquisitions or will you be looking for additional funding?
SD: We’re in a great position cash-wise since our last raise and completion of the acquisition of Australian Vaporizers. The deal with Cannmart did not require cash but instead it was an all-share deal. We do not expect to have any immediate or short term needs for additional financings.
JL: Congratulations on Namaste getting the green light to start trading on OTCQB. You’re about to gain a lot more investor attention. On a final note, what else would you like to share with investors that you believe makes Namaste a name they’ll want to remember?
SD: Thanks so much! We’re very proud to have gotten here and would not have been able to do so without our amazing team, our loyal customers, and support of our shareholders. We’ve followed through on every deal we announced and are very confident moving forward with our growth strategy for the company.
Namaste Technologies is a sponsor of Smarter Analyst. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.