Namaste Technologies Q2 Cannabis Revenue Jumps 18% YoY, Greenlane Suspends Its Pro-Forma Outlook From March

Cannabis-focused e-commerce company Namaste Technologies Inc. NXTTF revealed Thursday its second-quarter financial results with gross revenue of CA$6.3 million ($5.07 million), out of which cannabis revenue accounted for 52%.

The Toronto-headquartered company noted that the quarterly cannabis revenue jumped 18% compared to the second quarter of 2020.

This marks the third consecutive quarter of improved gross margins before inventory adjustment due to the advanced sales of higher margin products.

Financial Highlights

• Operating expenses for the six-month period declined 15% from the same period last year, and added to improved EBITDA across all operating segments;
• Overall EBITDA advanced 33% in the second quarter;
• Inventories decreased 14% to $5.2 million in the second quarter;
• At the end of the reporting period, on May 31, Namaste had $25 million of working capital.

“We are very pleased with the accomplishments we have made on the operating front which include increased margins over the last three quarters as well as an improvement in EBITDA within all our operating segments,” Meni Morim, CEO of Namaste stated. “While this is important, revenues were not where we wanted them to be as Covid-19 continued to have an impact on retail establishments. However, with the reduction of Covid-19 restrictions enabling greater access to retail stores, Covid-19 will have less of an impact on future revenues combined with the continuously improving margins will have a synergistic effect on our financials moving forward.”

Morim added that the moves they are taking such as the impending launch of CannMart Labs, an in-house “Roilty” shatter brand, rolling out the nutraceutical business and adding more SKUs will help the company reach profitability in future.

Recent Corporate Milestones

• Namaste’s wholly owned subsidiary CannMart Inc. successfully renewed its Health Canada cannabis processing and sales license;
• CannMart singed several supply agreements including with - CannTx Life Sciences Inc., Rilaxe Canna Inc., and Safari Flower Co., and a distribution agreement with Rapid Dose Therapeutics Corp.;
• The Company’s wholly owned subsidiary CannMart Labs Inc. applied for a Health Canada Controlled Drugs and Substances Dealer’s Licence for storage and distribution of psychedelics substances like psilocybin, psilocin, ketamine, LSD, DMT and MDMA.
• Namaste’s wholly owned Swedish subsidiary Findify AB had 54% higher revenue per new customer during the four consecutive months of sales in the first six calendar months, compared to the same period of last year.

Price Action

Namaste’s shares were trading 10.41% lower at 14 cents per share at the time of writing Friday morning.

Greenlane Posts Preliminary Q2 Revenue Of $34.5M, Suspends Its Pro-Forma Outlook From March

Cannabis company Greenlane Holdings, Inc. GNLN on Friday also revealed its preliminary unaudited second-quarter financial results with net sales of around $34.5 million.

It also disclosed a gross margin of 21% to 22% and reported a total cash balance of around $11.5 million.

In addition, Greenlane suspended its pro-forma outlook provided on March 31 for the calendar year 2021, mainly because of the issues in its supply chain caused by the global pandemic. It plans to provide a new outlook in recent future.

The company is looking forward to closing the previously announced merger with KushCo Holdings, Inc. KSHB during the third quarter, upon obtaining all the necessary approvals.

Price Action 

KushCo’s shares were trading 0.56% higher at 90 cents per share at the time of writing Friday morning. 

Photo: Courtesy of Jhon David on Unsplash