Future has dimmed with increased competition and Sean's missteps:
More importantly, the future for both CannMart and NamasteMD is dim. NamasteMD was launched in February 2018 and it has accumulated 14,000 users and will charge 15-20% of the revenue by referring patients to licensed producers (10 partners now). However, during the quarter Namaste has only managed to generate $61k of revenue which is basically non-existent. It is clear that NamasteMD is failing to monetize the users and most people just downloaded the app without making any purchase on it.
As for CannMart, despite receiving the sales-only license on September 24, Namaste has yet to prove that its platform could compete with other LPs and the government channels. The fundamental question is why would someone buy from CannMart rather than the provincial stores? Namaste needs to either cut prices or carry superior products that are exclusive to them. However, most producers that go to CannMart will likely be those ones that failed to secure supply agreements with the provinces. As legalization sales started in October, Namaste will be tested on its ability to generate sales while competing with the government-run online stores powered by Shopify (SHOP). In the medical market, it has to compete with other LPs including the largest incumbents such as CannTrust (OTC:CNTTF), Canopy (CGC), Aurora (ACB) and Aphria (APHA). We worry that CannMart has missed the optimal launch time and will have a difficult time catching up and acquiring customers.
"The last quarter was great! How do you come up with this garbage? Lol. The growth stage will show in coming quarters. You will learn...
