Recap/Review Of The Beyond The Press Interview (Nov. '17)For those who have yet to watch the interview, I highly encourage you to do so.
This was the longest Agoracom CEO interview of Sean to date I believe, with more great intuition into what he is really striving for long term . George starts on the recent revenue records achieved in recent months, with August being $1.43 Million, and October sales right below that, with $1.3 Million, a 174% increase year over year. Revenues in 2018 (next August) are expected to be near 25 Million dollars. With vaporizer sales unleashed on the Aurora website, where they now have over 20,000 patients currently accessing it, reached over 200 in the first 3 days. I expect this to generate close to being roughly an additional $250,000 each in November alone, for both Namaste and Aurora.
The Brazil website acquisition to me is especially exciting, for many reasons. Not simply because they now control both of the 2 dominant websites in Brazil, giving them seemingly full control in the country with an extra 10,000 customers, but because of the incredible position this sets them into, as the general outlook on cannabis changes there over the next few years, as it has in many other regions worldwide. Look at their Australian vaporizer site to witness how much revenue is generated, where the population is just over 24 million, which is just over one tenth of the size of Brazil (208 Million) in populous. Not to mention that this acquisition came to Sean and his team at no cost at all, with the previous URL owner actually approaching Sean, and not the other way around like it usually occurs. Think about that for a second. Companies are now chasing Namaste, and not the other way around. This is incredible news for investors, as it avoids any new dilution from being created, and it is believed to bring 1 million dollars annually, netting 30% profit immediately, before conversion rates are even increased with the same technology that was applied to their Australianvaporizers.com site in March 2017. That increased their conversion rates 50% almost instantly, so you can expect the same effect with the new Brazil site.
Namaste MD, the newly revolutionary facial recognition app to be utilized in creating a seamless connection between patients and doctors is now awaiting approval from the Apple store. But the true potential within the technology behind the app is not only limited to the cannabis industry, but also the entire “telemedicine sector”, as Sean puts it. The applications of this technology could easily work universally within the medical sector, so the opportunities to be gained are much more than meets the eye. Their CTO, who also developed the central networking system that completely baffled Shopify with it’s effectiveness, started working on the app only 3 months ago, completely from scratch! After a small investment from Namaste into a company called authenticating.com, they were granted exclusive rights in Canada to tap the potential of the facial recognition technology that connects a portal to the Canadian citizen record database to confirm the age and identities of individuals. Sean declares that he has already used the app and it is unbelievable, backing his own words up by offering a pilot test to anyone that wants it, because it’s ready to go! I’ll take his word on it. Not IF, but WHEN all these events come full circle, as intended, the incredible lead in the industry that this strategy will undoubtedly guarantee Namaste in the space, by providing such a unique and innovative app will be unparalleled and unmatched. Current global trends are always leaning towards technological advancements of apps, which as described in the interview, even transcends through the pizza delivery industry, by data showing a large portion of customers making their orders within an app on their phone or device. When things do come full swing with CannMart, Sean believes they could build a sizable patient list that many companies have already spent years of building up, to around 18,000 people within 6 months, just based off the conversion of traffic through their 2 Canadian sites. With the average daily traffic between the two being 1000 people, that would be a 10% conversion over 6 months, which I believe is very feasible, especially considering how ecstatic people will be about being able to buy their herb from the very same spot as their vapes! When, (not IF) this entirely new concept works in Canada, they WILL go to Australia next, where they already have over 125,000 customers in their database, with 4,000 customers visiting DAILY, and on top of that gathering the data of 200 people daily. All of this is just as I had suspected long ago, shortly after the Australian acquisition was first announced.
Sean is always excited about all the advancements he speaks on throughout each interview, but this particular one has me especially thrilled to hear what he has to say, even if his aspirations seem to be long-shot to most. At present time, because of the fact that you are not allowed to advertise in the marijuana/vaporizer space, many Canadian start-up LP’s may succumb to the giant entities that are already formed and showing signs of almost complete dominance of the industry. This gives Namaste a huge advantage however, because they already see an average of 1000 people on their 2 Canadian websites, DAILY. Through their already awesome chat support system, they intend to coerce Namaste customers into registering and becoming CannMart patients, with the simplified process that could take very little time, designed for todays busy society. The realization that Canada is only Namastes 6th biggest market right now, with 5 other bigger ones waiting to be tapped is profound. Once the conversion rates are shown in the following months after the sales license is granted, estimates from the data can be used to grant analysts the ability to crunch the numbers. We have already had great 3rd party support here from the top 3 players in the game, ACB, APH and WEED, which has really only started to prove their reputation. By the sounds of it, there are more supply agreements they are currently working on, as well as many “fun things to come.” I for one cannot wait to see what transpires in the following months. This last week has been extremely exciting as an investor. Sean pointed out something that to many, including myself, has been disregarded by virtually every investor. Apparently the revenue from a crop is counted by an LP as soon as it is harvested, when it should in fact be when the crop is sold and distributed. So when a company harvests a crop, they might not grow in the following year, just because they have been sitting on so much product to be sold. With this factual data shown, Sean believes that if the true revenue numbers were crunched from real sales, (not already grown weed awaiting sale), that they would be #2 in the space, just from Vaporizer sales alone, and not including the inevitable future growth soon to be seen. Also note that their hardware sales have doubled annually.
This is what essentially separates and distinguishes the sales only license being granted, which is the first of its kind, keeping in mind that CannMart is still considered an LP. They intend to copy their hardware division approach, by giving customers the best value and highest quality product available at the most competitive price. Hence, why Aphria was the first Canadian LP for them to sign a marijuana supply agreement with right off the bat, with them having the lowest cost to produce per gram. However, by the way Sean speaks hypothetically of the CannMart “one stop shop,” you might want to try something different from one month to the next, so maybe you would like some Canopy one time, then Aurora the following visit, to test the many various strains out there. So clearly they will be signing more supply deals sooner than later with WEED and ACB, because those 2 companies would be absolutely crazy not to. The simplification of having the many various LP’s different products in one location is what will truly make Namaste shine through. The planning stages have been completed for CannMart, and construction has now begun! The application is now in, and they have been in constant contact with Health Canada regarding the process, which is going unbelievable moving forward. Renovations are expected to be finished in the first week of January, or possibly sooner, depending on the holiday season.