In 2018, the price of Namaste stock was stable, trading above $1. It remained as such until around August, when it began surging as a result of the acquisition of over 14,000 registered NamasteMD users, its supply agreement with Bonify, the approval of its Android app, and the fast-tracking of patient acquisition.
But things started going downhill in the latter half of 2018.
Since the turn of the year, Namaste Technologies (TSXV:N) (OTCQB:NXTTF) has lost 15%, and in the last trading session, Namaste stock lost 2.35%, closing at $0.49.
Namaste stock continued to gain in August for about a month, reaching $3 per share before the price suddenly began to dip. The decline in stock price was likely a result of a report by Citron Research that indicated that Citron had uncovered fraud underpinning Namaste Technologies’s business. The Citron report culminated in the investigation of Namaste by Bernstein Liebhard law firm.
The firm investigated possible securities fraud in the company, and as a result, Namaste stock suddenly dropped on October 4, 2018, from nearly $3 to $1. Following the accusations, Rosen Law Firm also commenced its investigation into the fraud allegations, and it filed a class action lawsuit against Namaste.
Citron Report Misled?
In response to the Citron Report, Namaste Technologies indicated that the accusations were misleading and false. Namaste indicated that Citron participates in short-selling securities to their advantage and this was not the first time Citron had given misleading information aimed at manipulating stock prices of other companies.
Although many acknowledged the truth of the statement from Namaste, the damage was already done, and since then, Namaste stock price dropped to $0.5. Although Namaste saw a brief breakout at the beginning of this year when the stock price increased to over $1, it traded at a new bottom at the beginning of March.
Going forward, Namaste stock price is expected to increase through new partnerships or expansions and new business deals—but will it? What do you think?
Featured image: Canva