Namaste Technologies Inc. (OTCQB: NXTTF) stock price has just seen an unexpected development as it broke its major support at $0.5. This level acted as the bottom for the NXTTF price for over a year now, and the price has not gone below it in over 12 months, although it came close more than once. The drop below $0.5 came as a surprise, although this might be seen as good news for those looking to invest in Namaste while the price is down.
Namaste Technologies background
Namaste Technologies is a well-known cannabis company that operates a massive cannabis e-commerce platform. It offers various brands in over 20 countries around the world, and it operates more than 30 different websites.
The company offers numerous products such as accessories, vaporizers, glassware, CBD products, as well as medical cannabis. Its’ NamasteMD.com platform is also the first Health Canada-compliant telemedicine application.
Namaste’s goal is to offer as many cannabis-based products to its customers, but also to make the purchase of these products easy and available. With this goal, the company has come up with various technologies, some of which it invented, and others it acquired from other companies. One such acquisition got a lot of attention about a year ago when Namaste purchased Findify AB, a leading e-commerce AI and Machine Learning firm.
Findify uses its AI algorithms for optimizing and personalizing customers’ buying experience, making it quick, simple, and very enjoyable. Through it, and other similar methods, Namaste itself is enhancing user experience throughout its 30+ platforms, which makes it one of the best cannabis stores in the industry. However, this is not the end for the company, which plans to continue creating and acquiring new technologies and constantly improve its service, as well as the entire cannabis industry.
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Why did Namaste stock price drop?
Namaste was doing relatively well in 2018, with its’ stock price being rather stable, sitting right above $1 until late August, which is when it started surging. The surge came after the company started announcing various positive moves, such as the supply agreement with Bonify, as well as the acquisition of more than 14,000 registered users with NamasteMD. The company also announced the approval of NamasteMD Android app, acceleration of patient acquisition, and a pending sales license.
The growth continued for about a month, with the company’s stock price reaching $3 per stock, which is when the price suddenly started a rapid decline. The decline was likely caused by Citron Research’s report titled “Namaste: Citron has exposed complete FRAUD that underpins the ‘Business’ of Namaste.” The report led to an investigation of the company by the nationally-acclaimed investor-rights law firm, Bernstein Liebhard LLP.
The accusations were related to a potential securities fraud, and Namaste stock fell sharply on October 4th. Rosen Law Firm also started its own investigation and soon filed securities class action lawsuit against NXTTF. Days later, Bernstein Liebhard LLP did the same. Namaste itself responded to the accusations, stating that the Citron report is false and misleading. They pointed out that Citron engages in short-selling securities for its own gain, and that this is not the first time that it published false information in order to manipulate share prices of other firms.
While many recognized the truth in these words, the damage has been done, and the company’s price permanently dropped to $0.5. While there was a short breakout in early January 2019 when the price once again exceeded $1, it returned to its new bottom by early March.
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Namaste is fully funded going forward with $34.4 million $CAD war chest in the treasury, virtually no debt and fast growing sales reporting $18.5 million in revenues in 2018. Namaste is one exciting Company and one of the largest online retailer for medical cannabis delivery systems globally operating e-commerce sites in over 20 countries with distribution hubs located around the world. With Sean Dollinger out of the way many investors are predicting a significant resurgence in the coming months. We will be updating on Namaste when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Namaste.
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Disclosure: we hold no position in Namaste either long or short and we have not been compensated for this article.