In a letter to shareholders, CEO Meni Morim said the group was now attracting premium brands and value added partners.
() () is turning a 'new page' after the challenges of 2019 and is now a leaner machine, which aims to show the impact of new investments and its restructuring, along with new revenue by mid-year, according to its CEO.
In a letter to shareholders, Meni Morim, boss of the cannabis-focused online platform, said the group is now attracting premium brands and value-added partners.
He added that "a growing number of licensed producers and provincial agencies are recognizing CannMart's value proposition and expertise in e-commerce, production, packaging, and distribution in this highly regulated industry".
"Our debut in Cannabis 2.0 was a tremendous opportunity for us and we worked very hard to be one of the first licensed sellers to offer these products in the legal market," Morim added.
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Among the achievements last year, the CEO said, was settling class-action lawsuits in Canada and the US in principle, followed by final court approval early in 2020, as well as rebuilding the group's management and its board.
The firm parted ways with several consulting companies and re-negotiated contracts and adjusted strategy, Morim added.
In a separate statement, the group reported its results for the year to November 30, 2019, which saw it end the period with strong working capital of C$39.4 million and no debt.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the 12 months was a loss of C$23.1 million versus a loss of C$17.9 million for the 15 months to end-November 2018.
The net loss was C$63.2 million, compared with a loss of C$41.6 million in the previous fiscal year, due to the revaluation of assets and non-recurring costs associated with restructuring and legacy issues, Namaste said.
Net revenue for the year came in at C$16.3 million, compared with C$23.8 million for the 15 months ended November, 2018, reflecting mainly the sale/closure of non-core assets, it added.
"CannMart continues to expand its portfolio, offering its customers quality products from recognized brands. We have spent the last few years collecting data that we have used to build a better customer experience from end to end. With these building blocks in place, our focus is shifting to increasing revenues and gross margins for our on-line and B2B channels, while reducing costs and improving efficiencies throughout our divisions," the firm told investors.
Namaste also revealed it has appointed Faraaz Jamal as its chief operating officer. He has been with the company since May last year.
The group also said in the statement that it currently expects to file its interim filings for its first quarter to February 29, 2020, on or by May 21 this year as it makes use of the blanket relief granted pursuant to British Columbia Instrument 51-515 and Ontario Instrument 51-502 amid the coronavirus pandemic.
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