Namaste Technologies, Inc. (OTCQB: NXTTF) Stock Preparing for a Recovery?

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Namaste Technologies, Inc. (OTCQB: NXTTF) stock price has been performing rather well in late 2018 until its growth was interrupted by the market crash. However, the stock market crash was not the only factor that damaged the firm’s stock price. Issues within the firm, the termination of CEO Sean Dollinger, and efforts of Citron Research’s Andrew Left all contributed to the damage that the company has been experiencing in the last six months.

Who is Namaste Technologies?

Namaste Technologies is a company that acts as a one-stop shop for cannabis-related products. It operates the world’s largest e-commerce platform dedicated to cannabis products, and it has over 30 active websites under various brands in more than 20 countries around the world.

The company uses its subsidiaries to offer a wide range of different products, such as accessories, vaporizers, medical cannabis, glassware, and even CBD products. The company improves its business and advances through the acquisition of innovative technology platforms, such as AI and Machine Learning Company, Findify AB, which was acquired in May 2018.

Findify focuses on using the AI algorithms and machine learning to enhance the consumers’ user experience throughout the platforms, and Namaste saw this technology as an excellent way to manage its own platforms, websites, brands, and products. Acquiring such new technologies ensures that the company will keep its value, and increase it as it goes along. Of course, it is expected to do the same for its shareholders, but also for the broader cannabis market.

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What happened with Namaste?

As mentioned, the company had a great thing going for it until mid-September last year, when its price started declining until it stopped at around $0.6. The investors were not pleased at the time, but they started seeing the progress of the company’s stock price as soon as 2019 had started. As soon as January 1st arrived, Namaste started seeing significant growth which took its price to $1.3, with $1 as its major support level. However, internal issues prevented the firm from seeing recovery, and the stock price continues declining since early February to this day.

The company had problems in the past, although the majority of its issues came when noted short-seller, Andrew Left, and his Citron Research published a report on Namaste, stating that the company’s shares will never reach Nasdaq, and set the target price of $0.25 per share. They also accused the company of stock promotion through parties for shareholders that did not sell their shares within a 90-day ‘pledge period.’

The allegations were bad for the company, but the real hit came about a month later, on October 4th, 2018, when Citron published another report. Instead of bashing Namaste by speculating the future of its stock, the company accused Namaste of fraud and said that their shares could be halted by the Canadian TSX-Venture exchange.

This was a bad hit for Namaste, who announced that it takes such allegations extremely seriously and that it will conduct thorough research and try to find whether there is truth to the report. This was when the stock price started to drop significantly, and the drop only continued after Namaste fired its own CEO, Sean Dollinger, and replaced him with Meni Morim. The company even commenced legal action against Dollinger, but they quickly reached a settlement in mid-February 2019.

Meanwhile, the stock price which was barely recovering started dropping again, as Namaste’s inner issues continued. The company has since announced auditor resignation, and two resignations from its Board of Directors.

However, the firm is now ready to start anew, and it already announced some big moves since Dollinger’s departure. For example, it entered the edibles market by acquiring 49% of Choklat, and it will significantly improve its service through the acquisition of Pineapple Express Delivery. They also appointed a new auditor in mid-March.

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The company is trying to continue where it left off, but also have a new start and try to get the investors’ trust again by removing all negative influences, starting with Dollinger himself. While it will take time, and it will likely be very difficult for Namaste to climb back up — it is likely that it will, in fact, go back up after a while. Its business is still there, as well as all the technologies that it acquired in the past, and with the negative gone, the firm can finally grow once again with the strong focus on what is good for the company and its shareholders. We will be updating on Namaste Technologies when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Namaste Technologies.

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Disclosure: we hold no position in Namaste Technologies either long or short and we have not been compensated for this article.

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