Once described as the "Amazon of cannabis," Namaste Technologies (TSXV:N) (OTCQB:NXTTF) has yet to meet the hype, with Namaste stock now at just $0.37.
From a 12-month peak of $2.89 last September, Namaste stock has tanked a huge 87% in just under a year. Having been lauded as a pioneer in the cannabis e-commerce market, seeking to make cannabis distribution as simple and effective as ordering an UberEats, this pot play appears to have lost its way big time. However, as the market underwent a sharp correction, let's take a look at the story of Namaste stock and where it can go from here.
Why has Namaste Stock Tanked?
As mentioned, most cannabis stocks were significantly overvalued in the early days of legalization last year, and the market as a whole was due for a sharp correction, but Namaste stock felt the burden of that harder than most as it struggled with its own internal issues. Earlier this year, Namaste Technologies was grappling with a lawsuit relating to securities violations, which was eventually settled in July without admission of guilt, which did little to help Namaste stock.
In the midst of this securities scandal, the company dismissed CEO Sean Dollinger in an attempt to restructure the boardroom culture. Then in March, the company lost PricewaterhouseCoopers as its auditor, which led to its Q1 results being published nearly two months late, and at this stage, Namaste stock was in the dumps trading around the $0.50 mark and going nowhere but down.
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Can Namaste Stock Recover?
For the most part, Namaste Technologies' scandals appear to be in the past, and while the stock is still languishing in well below its lofty heights from last year, there have been some highlights of late that indicate Namaste stock could be approaching the end of the tunnel. Having recently appointed interim CEO Meni Morim to the position on a permanent basis, Namaste shares climbed 16% as investors felt steady hands were finally at the wheel.
With legalization 2.0 arriving in just over a month and paving the way for the cannabis derivatives market to explode, Namaste's broad brand portfolio of vapes, CBD, and flower products position the company to really take advantage. However, the key to turning Namaste stock around lies in corporate stability, and only time will tell if the boardroom has truly turned a corner.
Featured Image: Canva
