TORONTO, May 1, 2020 /CNW/ - Namaste Technologies Inc.
("Namaste" or the "Company") (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS:
NXTTF), an online platform for cannabis products, accessories,
and responsible education, today announced a letter to shareholders
from CEO, Meni Morim.
Dear Fellow Shareholders and Friends,
I'm reaching out to you today for a singular reason: I don't get
the opportunity to speak directly to you as often as I would like.
I'll be frank; it has been a tough year, for the company and for
shareholders. Many of you have been with us right from the start,
while some of you are brand new to Namaste. Either way, this letter
is for you.
In February 2019, I was asked to
consider the position of CEO by the Board of Directors. After
careful deliberation, I agreed, together with the team, to lead
Namaste into the next phase of growth. I saw (and still see) many
opportunities in the Cannabis industry that Namaste is in a unique
position to take advantage of. I also knew that 2019 would be our
ground-zero, and difficult challenges needed to be overcome to
position ourselves to capitalize on those opportunities in
2020.
As I settled into my new role, there was no question this
company's future was, and remains, bright. However, I also
recognized the imperative need for change – refocusing on what we
want our business to become, and letting go of distractions not
aligned with that focus. I believe that the first step toward
enacting change is to learn from our past. The second is to start a
rebuild from the ground up. Once we worked through a deep, holistic
self-audit, one unified element stood strong: we have all the
necessary pieces to forge a defensible path in becoming a trusted
leader in cannabis & cannabis-derivative products.
Though 2019 was challenging, we did pass several significant
milestones, including:
- Settling class-action lawsuits in Canada and the US in principle, followed by
early 2020 final court approval
- Rebuilding the management team, and the board of directors
- Terminating vendor and supply agreements that did not make
financial sense
- Parting ways with several consulting companies deemed no longer
a fit for Namaste
- Re-negotiating contracts with partners and adjusted our
commercial strategy to drive EBITDA growth in 2020
While tying up loose ends on the above was costly, and
distracting, it allowed us to build a lean, efficient foundation
and close the chapter on residual legacy items. While this was
happening, we also worked on moving the business forward. We were
able to:
- Build a brand new business to business revenue channel through
securing agreements and strengthening our relationship with various
Provincial governments, and we now have a direct path to the
recreational market
- Introduce our consignment and services model, which optimizes
our cash flow and opens up a new revenue stream that helps us
leverage our license and positioning
- Obtain our oils license, and were among the first to market
with Cannabis 2.0 products
- Focus our technology on the online user experience, eliminating
friction and improving CannMart's customer funnel end-to-end
- Secure licensing agreements with well-known brands, which we
view as crucial as we see the industry shifting to Consumer
Packaged Goods
I can confidently say that I believe our team understands the
risks inherent in supply chain and the necessity of balance in
upstream vs. downstream and that Namaste now has a much clearer
vision of where we need to sit in the value chain. Cannabis and
cannabis-derivative products are inarguably our short-term future,
however, we are looking past short-term to understand and define
both the scope and competitive edge of what lies ahead. In
anticipation, we are reinforcing and adding to Namaste's bench
strength to ensure our team is beyond adequately skilled and
prepared for our next steps. We have also cleared old inventory and
made room for the products that satisfy our customers' needs.
So where do we go from here? What I can tell you is, Namaste is
treating 2020 as an opportunity to turn a new page and "show"
rather than "tell". We have shifted our focus to meaningful
long-term success, and you may finally start to see the pieces come
together to form a new, promising picture in the months ahead. By
mid-2020, just a few months away, we hope to show the impact of the
investments, restructuring, and launch of new revenue channels in
our midyear results.
We are attracting premium brands and value added partners as a
growing number of licensed producers and provincial agencies are
recognizing CannMart's value proposition and expertise in
e-commerce, production, packaging, and distribution in this highly
regulated industry. Our debut in Cannabis 2.0 was a tremendous
opportunity for us and we worked very hard to be one of the first
licensed sellers to offer these products in the legal market.
Beyond the immediate benefit of navigating this uncharted territory
among other pioneers, a strong presence in Cannabis 2.0 opens up
opportunities for Namaste within what we believe is the swiftly
approaching era of Consumer Packaged Goods.
We are committed to delivering value now, but not at the expense
of future viability. Therefore, we remain cash conscious and
focused on our balance sheet. We have also made significant shifts
in internal processes, and while progress may not happen overnight,
I can confirm we are finally starting to see these labors bear
fruit.
Throughout this journey, it's clear we've had one constant: you.
Despite the ups and downs; our challenges, growing pains, and
under-delivered assurances of the past, you remained with us. I
can't begin to convey our immense gratitude for your continuous
support, your tough questions, and your suggestions as we work to
improve Namaste. You provide us with encouragement and motivation
to do better, and it's made all the difference to myself and this
team. Our shareholders also represent our customers, and in 2020
and beyond, we will obsessively work to grow both segments, and
finally - start overdelivering on our promises.
Thank you. And here's to the future,
Meni Morim
Chief Executive Officer
Namaste Technologies Inc.
About Namaste Technologies Inc.
With headquarters in
Toronto, ON, and offices in both
B.C. and around the globe, Namaste Technologies is a leading online
platform for cannabis products, accessories, and responsible
education. The company's 'everything cannabis store', CannMart.com,
provides customers with a diverse selection of hand-picked products
from a multitude of federally-licensed cultivators, all on one
convenient site. Namaste's global technology and continuous
innovation address local needs in a burgeoning cannabis industry
requiring smart solutions.
Information on the Company and its many products can be accessed
through the links below:
NamasteTechnologies.com
NamasteMD.com
Cannmart.com
NamasteVapes.ca
Everyonedoesit.ca
FORWARD-LOOKING INFORMATION – This news release contains
"forward-looking information" within the meaning of applicable
securities laws. All statements contained herein that are not
historical in nature contain forward-looking information.
Forward-looking information can be identified by words or phrases
such as "may", "expect", "likely", "should", "would", "plan",
"anticipate", "intend", "potential", "proposed", "estimate",
"believe" or the negative of these terms, or other similar words,
expressions and grammatical variations thereof, or statements that
certain events or conditions "may" or "will" happen. The
forward-looking information contained herein is made as of the date
of this press release and is based on assumptions management
believed to be reasonable at the time such statements were made,
including management's perceptions of Namaste's standing in the
online marketplace; Namaste entering a phase of growth; the
opportunities in the Cannabis industry and management's belief that
Namaste is in a unique position to take advantage of such
opportunities; that Namaste was able to overcome difficult
challenges in 2019 and is now positioned to capitalize on
opportunities in 2020; the belief that Namaste's future prospects
are positive, that the Company has the necessary pieces to become a
trusted leader in cannabis and cannabis derivative products, that
the vendor and supply agreements and consulting arrangements which
were terminated in 2019 were positive developments, that the
Company's adjusted strategy will drive EBITDA growth in 2020, that
the changes in 2019 helped to build a lean, efficient foundation
for Namaste's business; management's views regarding the strength
of the Company's relationships with various Provincial governments;
the potential positive impacts that the consignment and services
model may have on revenue and cash flow; the public perception of
various brands carried by CannMart and partners of Namaste; the
Company's understanding of supply chain risks and the Company's
vision as to where it can provide value in the supply chain; the
belief that Namaste has a team of people who are adequately skilled
and prepared for future initiatives of the Company; the potential
for the Company's midyear results to show the impact of the prior
investments, restructuring and new revenue channels; the
opportunities which may be available to the Company as a result of
being an early provider of Cannabis 2.0 products; the Company's
beliefs regarding the approaching era of Consumer Packaged Goods;
the current and anticipated future effect of changes to the
Company's internal processes; the Company's commitment to work
obsessively to grow its shareholders and customer bases and to
deliver on anticipated results; and the results of
operations, operational matters, historical trends, current
conditions and expected future developments, as well as other
considerations that are believed to be appropriate in the
circumstances. While we consider these assumptions to be reasonable
based on information currently available to management, there is no
assurance that such expectations will prove to be correct. By their
nature, forward-looking information is subject to inherent risks
and uncertainties that may be general or specific and which give
rise to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. A variety of factors,
including known and unknown risks, many of which are beyond our
control, could cause actual results to differ materially from the
forward-looking information in this press release. Such factors
include, without limitation: risks relating to the Company's
ability to execute its business strategy and the benefits
realizable therefrom, risks specifically related to the Company's
international operations, and risks relating to the market price of
Namaste common shares. Additional risk factors can also be found in
the Company's current MD&A and annual information form, both of
which have been filed under the Company's SEDAR profile at
www.sedar.com. Readers are cautioned not to put undue reliance on
forward-looking information. The Company undertakes no obligation
to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by applicable law. Forward-looking statements contained in
this news release are expressly qualified by this cautionary
statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release or has in any way approved or disapproved
of the contents of this press release.
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SOURCE Namaste Technologies Inc.