A crazy week for stocks, and fires burning everywhere here in California. Our thoughts and prayers go out to all of those families affected by the fires. It's truly a sad spectacle to see what's going on in and around Southern California right now.
The markets go on though, and they're blazing their own trails these days with wild fires of their own all over the place. Guess that's the theme, but nobody can deny what the cannabis space continues to do for investors up in Canada lately.
A few Canadian cannabis stocks we're keeping an eye on recently continue to trade in pretty wild fashion as well after some huge runs over the last several weeks.
Aurora Cannabis Inc. (OTCBB: ACBFF) (TSE: ACB.TO), Canopy Growth Corporation (OTCBB: TWMJF) (TSE: WEED.TO), Aphria Inc. (OTCBB: APHQF) (TSE: APH.TO), and Namaste Technologies Inc. (OTCBB: NXTTF) (CSE: N.CN) are the Canadian plays we like the best.
All of them have made some big moves lately and for good reason - Canadian Prime Minister, Justin Trudeau, is expected to push the legalization of cannabis through by July of next year. At least that's what the media is suggesting.
No matter what though, the speculative small cap investment community has bought into the cannabis space hook, line and sinker. Just look at the first three here - it seems like they all trade and tandem together.
One of the late bloomers though - Namaste Technologies Inc. (OTCBB: NXTTF) (CSE: N.CN) - is really starting to get some traction with a few more key news events following our Tuesday edition when the company announced it signed an non-binding letter of intent ("LOI") with O Cannabis We Stand On Guard For Thee ("O Cannabis") under which O Cannabis will provide patient consultation services to Namaste's wholly owned subsidiary, NamasteMD Inc. ("NamasteMD").
Yesterday, the company announced what I believe to be one very obvious piece of good news, and one not so obvious:
The not so obvious was Namaste has elected to exercise its right under the warrant indenture (the "Indenture") governing the common share purchase warrants of the Company (the "Warrants") issued on March 9, 2017. Pursuant to the terms of the Indenture, the Company may accelerate the expiry date of the Warrants when the closing price of the common shares of the Company (the "Common Shares") on the Canadian Securities Exchange exceeds $0.70 for a period of 10 consecutive trading days (the "Acceleration Event").
Namaste is pleased to confirm that an Acceleration Event occurred as of December 7, 2017. Accordingly, the Company has chosen to accelerate the expiry time of the Warrants to 4:00 p.m. (Toronto time) on January 8, 2018. This news release constitutes notice to Warrant holders of the new expiry date. Any Warrants remaining unexercised after the new expiry date will be cancelled.
As of close of market on December 7, 2017, a total of 12,240,600 warrants of the 22,676,000 originally issued Warrants had yet to be exercised. Each Warrant is exercisable to acquire one Common Share of the Company at an exercise price of $0.35. Consequently, if all remaining unexercised Warrants are exercised, proceeds to the Company will total $4,284,210.
Not only does this add additional funds to the company's growth coffers, it's also a vote of confidence for shareholders that the company and the stock do appear to be on the right fundamental track, because here's the obvious...
Also yesterday, Namaste announced record breaking sales for the month of November 2017, as reported by the Company (including shipping revenues after discounts and refunds) of C$2.2M, equating to a 69% month-on-month increase and a 146% year-on year increase, representing Namaste's highest month of revenue in the Company's history.
Here's a link to the entire press release, which I strongly suggest investors and potential investors have a read: https://finance.yahoo.com/news/namaste-announces-november-record-sales-120000435.html.
In short, Sean Dollinger, President and CEO of Namaste commented: "Namaste's goal from the outset was to create a platform that provides medicinal cannabis users with all the products and services required to make well-informed decisions. We believe we have achieved that by providing our users with access to highly trained professionals that can help guide them throughout the process and by offering superior products at competitive prices in the market.
Our continued growth in sales proves the e-commerce infrastructure we have created is highly successful and we fully intend on duplicating those successes with regards to medical cannabis products, which we believe represents an even greater opportunity. We believe we now have all the pieces in place to fully exploit the medical cannabis markets in Canada and abroad. In addition to seeing significant growth in sales, management is also pleased to report that the Company has sufficient cash resources to continue its strategic growth plan. Namaste's management teaming is working towards reducing operating overhead in order to further enhance its positive working capital position."
It sure looks like Namaste is rapidly positioning itself to leverage its large user-base of vape users with an eye toward dramatically shifting their future growth prospects over into the cannabis space, once it becomes legal in Canada.
If you're looking to take advantage of any potential opportunities presented by certain cannabis stocks up in Canada over the next several months, we'd strongly consider taking a deeper dive into the above mentioned plays, especially Namaste Technologies Inc. (OTCBB: NXTTF) (CSE: N.CN), which pretty much appears to be the lesser known name of the four - at least right now anyway.