Namaste Technologies shares surge Monday; up more than 44% in the new year

Namaste Technologies Inc (CVE:N) (OTCMKTS:NXTTF) shares had a healthy jump upwards on Monday, recently up 10.5% at C$1.26.

The start of 2019 has been a blockbuster for Namaste, the operator of e-commerce site CannMart, which saw its stock fall in December but has been climbing since the calendar turned over.

The company’s stock is up more than 44%  In January.

READ: Namaste names Neil Kothari as cannabis company’s chief legal officer

In the run-up to recreational legalization in Canada in October, cannabis stocks across Canadian markets rocketed, with a substantial number of significant corrections, many of which occurred in December. 

The result in January? Lots of runway for movement. 

“This is simply traders going after low-priced cannabis names,” says Tim Collins, a trader and Proactive Investors contributor. “We’re seeing similar moves in other small cannabis names.”

Recent moves

In December, Namaste announced it appointed Neil Kothari as the company’s chief legal officer. The Vancouver-based company added in a press release that Fern Glowinsky is leaving the board and that Chief Financial Officer Kenneth Ngo will replace her.

It also announced it is acquiring a 49% stake in Pineapple Express Delivery Inc, a company that offers a same-day delivery service platform for medical and recreational cannabis to Canadian licensed producers.

Under the terms, Namaste will take shares in Pineapple Express Delivery and an affiliated entity, which represents an additional 34% equity stake in exchange for shares of Namaste having an approximate value of C$3.06 million.

READ: Namaste Technologies takes 49% stake in Pineapple Express Delivery

After the deal is completed, Namaste, which earlier took a 15% stake in Pineapple, will own just under half of the shares of Pineapple Express.

Shares of Namaste were up 10.5% at C$1.26 in Toronto and up 9.4% at US$0.94 in New York.

Story by ProactiveInvestors