Last week, Namaste Technologies Inc. (TSXV:N) (OTCMKTS:NXTTF) announced a purchase agreement with Tilray Canada Ltd., allowing Namaste to purchase bulk medical cannabis from the subsidiary of Tilray Inc. (NASDAQ:TLRY).
The partnership gives patients the ability to purchase medical cannabis on Namaste’s e-commerce platform CannMart Inc. Namaste purchased the Toronto based company in 2017. Patients will have to wait to access Tilray’s products on CannMart while the company goes through the process of securing its sales license from the Health Canada and the Cannabis Licensing Authority.
"We're very proud to have signed a Purchase Agreement with Tilray, who we believe are one of Canada's leading Licensed Producers,” said Sean Dollinger, President and CEO of Namaste in a statement. “We have already had customers from NamasteMD ordering products through Tilray and the response has been overwhelmingly positive. As such, we are looking forward to offering Tilray's high-quality products in our platform.”
The Tilray announcement is part of Namaste’s strategy seek partnerships with t top global ACMPR Licensed Producers according to a company’s statement. CannMart already has partnership agreements in place with several other cannabis companies. In January, 7ACRES, a wholly owned subsidiary of Supreme Cannabis Company Inc. (TSXV: FIRE), announced they too signed a supply agreement with CannMart in a deal valued at CAD$6 million. In March, CannMart announced a partnership with Marigold Projects Jamaica Ltd., a deal which allows CannMart to import cannabis from Jamaica.
Dollinger continued: “Namaste's goal of becoming Canada's leading medical cannabis e-commerce platform has once again been reinforced through the signing of this strategic Supply Agreement with an industry leader like Tilray. Namaste feels incredibly lucky to have the opportunity of working with a true pioneer to the industry. We're looking forward to offering Tilray's products to our patients and in providing an exceptional user experience for each and every patient through Cannmart.com."
Tilray continues to see share prices skyrocket, with the company gaining 13.9 percent as of Monday morning, which makes the deal a good one for Namaste. Still, the market continues to speculate on Tilray’s success while coming up with no solid answers. Since Constellation Brands announced their deal with Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) share prices have risen nearly 200 percent, with Tilray’s market cap set to grow more than Aphria’s (TSX:APH) and Aurora’s (TSX:ACB) combined.
Sure, their status trading on the Nasdaq helps, but the truth is, marijuana stock investors are set for some huge disappointment in the coming months when they find out that Tilray is nothing but empty promises.
CROP’s hemp farm in Nevada
CROP Infrastructure Corp. (CSE:CROP) (OTC:CRXPF) announced a member interest purchase agreement with Elite Ventures LLC for a farm. The agreement gives CROP 49 percent interest in a 315-acre property located in Nye County, Nevada for the company to grow hemp. As part of the deal, CROP will pay $1.35 million for the property in exchange for their interest in the farm.
CROP loaned nearly $1.7 million for the property and equipment costs for the farm to help meet production demands. The farm is expected to reap its first hemp harvest in 45 days.
The property’s location is ideal to help CROP produce quality hemp due to the climate. CROP is not the only company producing hemp in the area. The small-town of Pahrump which is located in Nye began cultivating hemp in 2017. Hemp’s popularity extends beyond Nye County as Nevada is fast becoming a player in Hemp production.
Hemp growers in Nevada are trying to take advantage of the state's loose laws around the plant. From a grower's perspective, hemp can be easier to produce than its cousin cannabis. Nevada's laws have more regulations in place for the cannabis industry leaving the door open for hemp farming.