A New Year has stocks heading higher again. How long can this go on? Inevitably, because if you remember the days of the Dot Com Bubble, everything pretty much just kept going until the powers that be had said enough is enough.
So when is enough enough? Who knows, but I can tell you this time around the valuation metrics for the S&P 500 are nothing like they were back then. Neither is the amount of speculation that plagued the Dot Com Bubble, because there's still a lot of investors out there sitting on the sidelines. You can't win if you aren't on the field playing.
Speaking of winning, we brought all of you a number of stocks that did well last year, and of course a few losers along the way, but none more impressive in such a short amount of time than the performance of Namaste Technologies, Inc. (OTCBB: NXTTF) (CNSX: N.CN).
The stock has literally gone nuts, and who's to say this can't continue go on with all of the buzz surrounding the entire cannabis space up in Canada and even down here in the U.S. with stocks like General Cannabis Corp. (CANN), which is a Denver, CO based company that provides services to the regulated cannabis industry here in the United States.
Here's some charts below of some stocks in the cannabis space we've been talking about over the last few months, but none of have done quite as well as Namaste Technologies, Inc. (OTCBB: NXTTF) (CNSX: N.CN), which was in the news yet again today.
Here's an excerpt below of the meat of today's PR with a link to the full press release here: https://finance.yahoo.com/news/aurora-namaste-complete-strategic-private-113000995.html.
EDMONTON and VANCOUVER, Jan. 2, 2018 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) and Namaste Technologies Inc. ("Namaste") (CSE: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced the signing of a binding term sheet towards a final Private-Label Software Agreement ("Private Label Agreement"), whereby Namaste will provide Aurora's wholly-owned subsidiary, CanvasRx Inc. ("CanvasRx") with a customized version of Namaste's patient acquisition tool, NamasteMD.com ("NamasteMD"), as well as desktop and mobile applications for Google Android and Apple iOS platforms. The companies have 30 days to complete a final agreement.
Private Label Agreement
NamasteMD is an online telemedicine platform for patient consultation and registration, bringing together Namaste`s tested technology platform, including certain proprietary authentication technologies, as well as consultation, education and medical document issuance processes. Under the terms of the Private Label Agreement:
Namaste will provide CanvasRx with a customized, CanvasRx-branded version of NamasteMD
Namaste will provide CanvasRx with a two-year exclusivity period for the private label version of NamsteMD.com in Canada
Namaste will initially provide the application for both the Google Android and Apple iOS platforms
CanvasRx will require their own doctors and/or nurse practitioners to operate the platform
Commercial terms of the agreement are not disclosed
In consideration of Aurora's assistance for the future optimization of NamasteMD, Namaste has issued Aurora 500,000 stock options, exercisable at $3.35 per common share for 48 months, vesting quarterly over 12 months.
Support Services Agreement
In addition, the companies have also signed a non-binding, non-exclusive Letter of Intent to complete a final Consultation & Support Services Agreement ("Consultation Agreement"), whereby Namaste will provide patient referral services to Aurora, where applicable under Canada's Access to Cannabis for Medical Purposes ("ACMPR") regulations. Under the terms of the Consultation Agreement:
Namaste shall provide certain patient-focused education and strain selection services, as well as assistance in preparing the requisite paperwork (Medical Documentation) for registering patients with Aurora
The Agreement is non-exclusive for a one-year term
Namaste shall provide the services under the agreement on preferential terms to Aurora
Commercial terms of the Consultation Agreement are not disclosed
The agreements further strengthen the strategic ties between the two companies, who already collaborate on eCommerce (sale of Namaste-sourced, curated selection of vaporizers through Aurora website, utilizing Namaste's technology platform), and the distribution of BC Northern Lights products. Once completed, the new agreements will provide Namaste with recurring revenues through the private label platform, while Aurora will be the only licensed producer able to offer Namaste`s streamlined online patient acquisition platform under its own (CanvasRx) brand.
Management Commentary
"NamasteMD provides an innovative and efficient extension to our industry-leading in-person cannabis counseling and education services provided through CanvasRx," said Terry Booth, CEO. "The new platform will enable us to extend our industry leading patient care to areas where we currently have no physical presence. This will allow us to leverage the strength of both the CanvasRx and Aurora brands, without having to commit to substantial investments in brick and mortar facilities. Namaste is a trusted partner with whom we already successfully collaborate on two promising initiatives, and we look forward to extending our partnership based on innovation and customer care excellence."
Sean Dollinger, President and CEO of Namaste added, "We are thrilled to have Aurora, the industry's most innovative and dynamic Licensed Producer, as our preferred strategic partner. Our drive to innovate meets the cannabis industry`s need for reliable technological solutions to improve operational efficiencies and expand the customer experience. We are very proud to be aligned with Aurora's team, and look forward to executing on our ongoing collaboration."
What you just read is paramount in my opinion, because as the potential of the entire cannabis space up in Canada continues to play out over time, there's going to be a handful of early players that end up becoming the big boys in the space.
That's the way things usually play out anyway, and based on the news I continue to see coming from both Aurora and Namaste over the last few months, we may very well be looking at a few of the future's big boys right now.