Namaste Technologies Reports First Quarter 2021 Financial Results

• Increased Revenue While Substantially Decreasing Operating Expenses
• Cannabis Revenue Increased by 113% in Q1 2021 Compared to Q1 2020

TORONTO, April 28, 2021 (GLOBE NEWSWIRE) -- Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) a marketplace platform for cannabis and wellness products, today reported its financial results for the first quarter ended February 28, 2021 (“Q1 2021”) with references made to financial results for the first quarter ended February 29, 2020 (“Q1 2020”). All financial figures are in Canadian dollars unless otherwise indicated.

Q1 2021 Highlights:

• Net cash used in operating activities decreased by $7.5 million to $2.5 million in Q1 2021 vs. Q1 2020, reflecting improved management of our short term assets.
• Gross revenue for Q1 2021 was $6.15 million ($5.46 million Q1 2020), representing an increase of 13% while operating expenses decreased by 10.9% over the same period.
• Net revenue for Q1 2021 was $5.5 million ($5.3 million in Q1 2020).
• Cannabis revenue increased by 113% vs the same quarter last year, and maintained its strong position at 47% of total net revenues, the second highest percentage for cannabis revenue out of total net revenue achieved in the last four quarters.
• Inventories decreased by 33% to $5.9 million in Q1 2021 ($8.8 million in Q1 2020) with increased revenues, demonstrating improved inventory management practices implemented as a key initiative to reduce slow moving inventory in 2020.
• Accounts receivables decreased 22% in Q1 2021 vs. Q1 2020 despite an increase in sales, illustrating our ability to convert short term assets into cash much more efficiently.
• The Company’s working capital position remains strong at $31 million as at February 28, 2021 bolstered by the closing of a bought deal financing of $23 million (approximately $21 million net of all fees, costs and expenses).
  

Recent Corporate Highlights:

• Announced the addition of leading licensed producers to the CannMart.com platform including: Auxly Cannabis Group, Hexo Corp and The Green Organic Dutchman Holdings (TGOD).
• Announced that CannMart Inc., the Company’s wholly-owned subsidiary, has expanded its product offering to both our provincial customers who retain exclusive rights to sell to recreational consumers and to our own medical customers across Canada via CannMart.com, by entering into a number of supply agreements including with CannTx Life Sciences Inc., Rilaxe Canna Inc. and Safari Flower Co.
• Launched CannMart.com into the USA offering American resident hemp derived CBD and smoking accessories.
• Received a standard processing licence from Health Canada for CannMart Labs Inc. (“Labs”), the Company’s wholly owned subsidiary with its state-of-the-art BHO extraction facility.
• Announced the Company’s evolution into a pre-eminent wellness company, connecting consumers to their wellness needs of tomorrow, with planned expansion into the nutraceuticals market in fiscal year 2021.
• Completed the acquisition of 49% interest in Labs to take the Company to 100% ownership.

“We continue to transform CannMart.com which saw sales increase in Q1 2021 compared to the prior year as we see an increased number of vendors looking to sell their cannabis and accessories with us,” said Meni Morim, CEO of Namaste. “While our marketplace platform is demonstrating strong growth, the impact of Covid-19 lockdowns across Canada continues to be felt by the cannabis industry. However, we believe the marketplace and the Company remains well-positioned to experience a robust increase in our top-line as the market improves. Going forward, we are excited about the strategic opportunities for growth as we launch “Roilty”, our in-house branded cannabis consumer products, in Canada, and launch the first nutraceutical products in fiscal 2021 in North America and anticipate a launch in the UK and Europe thereafter.”