Namaste stock has been trading in a wide range over the past month amid growing volatility in the cannabis sector. The stock went up about 50% in the first week of September but has corrected sharply now. Let's analyze the recent updates from Namaste Technologies Inc (TSXV:N) (OTCQB:NXTTF).
Key Developments
The situation with the cannabis industry may have not been all that great over the past few months, but most of the companies are continuing work towards expanding their business. Cannabis online retail company Namaste Technologies has been in the news this month for a couple of reason.
Earlier on in September, the company announced that CannMart has managed to secure an order of pre-rolled products from BC LDB, the liquor distribution branch of British Columbia. It goes without saying that this is a significant deal and would see CannMart products being made available at several stores across British Columbia.
Towards the end of August, Namaste stock got an initial boost after it announced the appointment of a new Chief Executive Officer. Meni Morim, who was appointed the interim CEO after the previous CEO Sean Dollinger was dismissed back in February, is now the official CEO for Namaste Technologies and looking to bring the company back into the green light.
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Namaste stock has had a bit of a rollercoaster ride over the course of the past couple of years. From the middle of 2017 up until September of last year, it had as much as 1,500% in gains and had become one of the hottest stocks in the sector. The registrations for its online portal was growing steadily, and it seemed that Namaste stock was well on course to continue on its merry path. However, things started falling apart for the company in October last year after the short-selling firm Citroen released negative reports about the firm. The allegations were serious.
Citroen alleged that it had made a false claim about listing on the NASDAQ exchange. In addition to that, the then Chief Executive Officer Sean Dollinger was also alleged to have made side deals over company assets.
The company soon started an internal inquiry, and while the NASDAQ accusation was found to have been false, Dollinger was found guilty of side dealing. He was terminated from his position. The whole sorry episode led to an erosion of trust from the company, and Namaste stock has been trying to get back into its old levels ever since.
But with the permanent appointment of Morim and Namaste Technologies' recent deals, things are starting to look bright once more for Namaste stock. Investors will want to watch this space for further updates.
Featured image: Canva
