Namaste Technologies Chief Technology Officer Chad Agate – RICH TV LIVE – NOVEMBER 27, 2019 – ~CannMart leverages distribution expertise to expand B2B and access adult-use markets~
Hi how’s everybody doing today this is rich or in behalf of rich tv live with a very special guest it is chad a got a who is the cto of namm estate technologies how you doing today chad i’m doing great rich thanks for having me thank you for being here and why don’t we get right into it and you can tell us a little bit about namaste technologies inc sure
Namaste is a not familiar it’s a successful online cannabis marketplace we also offer telemedicine services through our nam estate and the application and a journaling application that allows us to collect direct feedback the power rai h okay fantastic and numbers they recently entered into an agreement with chocolate inc what does this mean for namaste and any
Potential investor chocolate allows us to really focus in on cannabis 2.0 over the upcoming extracts and edibles right everyone knows that this is the next phase of cannabis up until now with just what’s happening in canvas and just dried flower being available and it’s really been limited right customers don’t have a lot of choice in selection so our engagement
With chocolate really allows us to capitalize on that right very good and we’re excited about cannabis 2.0 and i know that we haven’t seen any of that yet until i believe it’s december 17th is when companies start putting those products on the shelves so i’ve been telling my community that we pretty much can’t really see those results until january because
That’s going to christmas so maybe push back that mostly till january where we’ll see a big launch and then you probably won’t see any of those revenue showing on company’s balance sheets into q2 2020 is that fair assessment i believe that would be fair yeah you know the products becoming available for sale in december we won’t really start seeing traction
January february q1 ki jaya okay perfect now how does the team at namaste make the company so successful are the largest focus for us over the you know my we’ve been through and spent a lot of time cleaning up or cleaning up the past right so we’ve cleaned up and cleared out a huge mega huge amount of baggage and now that we have that finally had that cleared
Up we’re really focused and i’m making a company successful starting with a few things getting our who right who is on their team and who’s guiding the organization we have a very very strong team to take us into the future and i’m super excited about that a lot of really strong and challenging individuals and you know it’s funny i know quite a few members that
Are shareholders of animist a and they really believe in the company despite the fact that stock has you know gone down like most of the entire sector i believe the entire sector is down 50 to 60 percent across the board so i kind of find it comical when people talk about one company specifically going down i’m like well take your pick the whole sectors down
So you can’t just talk to me about one company they’re all down when you see canopy growth down and they are essentially the biggest company in north america as a licensed lp with the most money backing them and they’re down from a high of 70 dollars to as low as 25 yesterday they’ve done well today they’re up 13% as we speak after they deal with drake which
I thought was a huge catalyst and once again proof of where the sector is going when you have huge global icons like drake creating a business a subsidiary with canopy growth i think that’s a huge catalyst for the whole sector it proves that hey you know what when guys like drake that are very successful are getting it started in cannabis i think it just goes
To show that we’re just getting started and the upside is tremendous now in speaking on that where do you see the cannabis industry moving in the future i believe that first steps are happening right now with cannabis 2.0 right we see as more and more product will be coming online in december next year let’s start to see this shift away from dried flower and
A continued commoditization of dried flower and we start will beginning to see cannabis turning into more of a cpg product where people are just there buying products with very very specific ingredients very very specific donors in right and that’s where we see where namaste really sets ourselves apart right we are in the middle of that marketplace we’re in
The middle of these transactions right we’re not dependent on greenhouses and grow houses and growing a physical product we’re sitting right in the middle of that transaction and helping people as these products come online understand first the multitude of products leveraging our machine learning and ai technology helping them find the right product for them
And then continuing to filter out up and filter down those products right so we see that as being a key differentiator for us now speaking of being a differentiator i have quite a few friends that are in toronto and they are huge fans of pineapple express and ken mart so congratulations with those two huge partnerships because those are essentially platforms
That people like and people are using so i think you guys are on the right track with both of those products i think that there are very strong as far as what customers are saying on the street all i’ve heard is good things let’s break it here and we are sipping the customers having a very very positive response hopefully the changes that we’re making on ken
Mart and to what we’re doing pineapple express people like their stuff now yeah and the funny thing is you know everyone looks at the stock price but i’m a little different as a cannabis enthusiast i actually like to ask people whose products do you like you know who’s got the best customer service who’s got you know the most lowest cost program you know these are
Some of the things that really matter to me because when you think of longevity it doesn’t matter what your share price is today because if you’re selling moldy weed in the future nobody’s gonna want your product at the end of the day who’s got the best product who’s got the best pricing who’s got products that people are coming back to and i’ve heard really good
Things from both can mart and pineapple express so i just wanted to put that out there first and foremost now in saying that where do you see namaste technology heading into the future i think we’ll continue to focus on the same day delivery can you expand that and continue to build out our marketplace application marketplace buffon’s we’ve invested heavily into
Our technology and our core technology base and we really see again as more of these products become online and become available for consumers that will begin to be able to really really deeply leverage that technology that we spent this time building right when it’s just a few dried flower susan even though it’s a few dried flowers because we still have the
Most skus available in the medical market today on the ken website right even though it’s dried flower skus think of the amount of confusion that’s out there for the average user they’re like what do i do with all this now let’s go fast forward into january of 2020 now there’s no longer just 2,000 different strains of cannabis now we have those 2,000 strains
In multiples of different extracts multiples of different products right now we’re talking about thousands and thousands of products just think about that sure level of confusion for the average user where namaste then comes in this is okay based on what we know about you these are the products that we think that work best for you based on what you’ve told us
About consuming these products and these are the products that we think it’s going to work best in this technology that we’ve been spending the last two and a half years building really really will begin to see the results in the coming years that’s very good so that’s very similar to like programmatic advertising very so what a lot of people remember correct
With a lot of people remember the acquisition of fine – fine last year yeah the machine learning and personalization company right and this is where things start to really people will notice this today currently on the can mark site the product grid is personalized for every single user right it’s the dependent on what we’ve learned about you and how your
What we learn about your consumption habits that will change it offer you up products that are more relevant for you that will continue to evolve and evolve over time right the more we learn about the products coming online the more we learn about you but i will continue to personalize that experience for people and that’s ultimately people want choice and
Then they want to be kind of they want to be guided and then able to make it a good decision for them that’s where we set who would you say are nemec’s main competitors and how do you guys stand out amongst the pack you know this is a funny question it’s a really difficult one to answer right because the lps aren’t really other than either competitors people
There are were a partner to them but we don’t grow cannabis that’s these these products we’re listening on the site aren’t products that we’re manufacturing we tell people innovate but we’re we’re helping these people bring their products to market right helping the lps get their products in the hands of the consumers so you would call yourself kind of like a
Middleman then okay we are we’re sitting in the middle of the transaction right you’re not yeah exactly eight a store an online store where people can go and they can buy all these different and ciliary products from other elements exactly that’s exactly what’s happening and then through our model our consignment model it’s just really helping us preserve cash
Right everybody knows what’s coming there’s a lot of cannabis companies were able to raise a ton of money over the last few years so right now it’s for us it’s all about conserving cash so leveraging that model we’re having lps that have a lot of product and there’s very led giving us this product now on consignment we’re holding it in powerful to be able to
Fulfill without burning any cash it’s further extends our runway it keeps our cash position very very strong which is negative going into next year very good now where can viewers find more info about the company you can always see more information on estate technologies calm or in-cabin our wtmr capcom well thank you so much for your time today chad i wish you
All the best in your future endeavors we will be watching very very closely our entire community really really wants to see namaste succeed we have a lot of investors that are in on the stock so hopefully the rest of 2019 can finish very strong for you guys as a company and hopefully 2020 can be a great great year for namaste awesome thanks for having me thanks chad have a great day
Transcribed from video
Namaste Technologies Chief Technology Officer Chad Agate By RICH TV LIVE