Namaste stock has traded sideways in recent weeks as investors await the company's delayed fiscal 2018 financial report.
Yesterday, saw Namaste Technologies (TSXV:N)(OTCQB:NXTTF) announced its "third bi-weekly default status report" in regards to this report.
Namaste Stock - Trading Sideways
The sideways movement has meant shares have sold anywhere between $0.70 and $0.75 CAD. At present, they are trading for $0.72 CAD on the TSX.
Back in April, the company reported that it's filing would be delayed. It was due on April 1st but the company cited a change in auditors as the reason for the delay. Management applied for a time extension so that its newly appointed auditor, Baker Tilly WM LLP, could undertake and complete its audit.
Namaste Stock Affected By MCTO?
Subsequently, it was granted a Management Cease Trade Order (MCTO) which remains in effect until such a time that Namaste files its annual statement. A new deadline, May 1st, 2019, has been set. While the MCTO is in effect, Namaste’s CEO and CFO are unable to trade any of their company shares.
As per the press release, the MCTO:
"prohibits the chief financial officer and the interim chief executive officer from trading in the Company's securities for so long as there are filings that are outstanding under applicable securities laws".
However, it doesn't affect the general investing public to continue trading in Namaste stock.
Now, the company expects to file its results by the end of May—giving it another two weeks. The delay means the results for Q1 2019 will also be delayed—only to be filed after the fiscal 2018 results.
The Company subsequently provided bi-weekly default status reports on April 15th, 2019, and April 30th, 2019.
At the end of April, Namaste Technologies released a corporate update. The report sent Namaste stock skyrocketing nearly 30%. It was a sign that investors might get back on board if the company can prove itself.
The report said that the company had plans for significant technological investments to improve its services and grow its network of licensed producers, cultivators, and micro-growers.
Importantly, it also suggested that that company was looking inward to improve its outward performance.
After a rough start to 2019, the online medical cannabis retailer might see a resurgence if its upcoming financial report gives investors any sign of operational success.
The shares tanked in late 2018 due to a Citron report that suggested fraud within the company by it’s then-CEO Sean Dollinger. But prior to that, Namaste was doing great things; it's NamasteMD website grew over 300%, and the company reported revenues of $1.65 million.
All is not lost, but Namaste stock investors will be begging for strong figures in its upcoming fiscal report.
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