It's always best to mend a feud sooner than later. Especially if it causes a massive dip in share value, as was the case for Namaste stock in February.
But is there such a thing as too soon? Investors might be scratching their heads asking this very question because news of ex-CEO Sean Dollinger's return to Namaste Technologies (TSXV:N) (OTCQB:NXTTF) surfaced today.
Namaste Stock Reaction
A fortnight on from his termination (and the threats of legal action that went with it), Dollinger is now back in the good books. He has dropped his legal action against the company and will now become a senior advisor to Namaste Technologies. In a press release announced earlier the company said the following:
>> Sean Dollinger Speaks About Termination
"[The Namaste board] has reached a mutually agreed upon settlement with Sean Dollinger resulting in Mr. Dollinger entering into an advisory relationship with Namaste [...] Mr. Dollinger has withdrawn his previously announced legal application against the Company."
Further, the former CEO has agreed to "step down from all formal roles with the company, including as a director." But as stated, he will remain as a senior advisor to the company.
Namaste stock is up 5.6% on the news. It's hard to know if this is a celebratory gain or a tepid gain. Should the stock have soared much higher considering how much it dropped upon his termination? Are investors wary of how fast the curtains have fallen on this whole drama?
Special Investigation
In short, Dollinger was axed after a "special committee investigation" was launched into some purported business misconduct. The allegations were "made by a short seller” last October and reported in the Citroen Report.
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A day after his termination, he announced he would "take immediate legal action." He was keen to set "the record straight" and clear "any misconceptions caused by the inaccurate allegations" brought against him.
He also spoke very openly to the Midas Letter last Friday on the issue. The damage seemed almost irreparable.
Mended
But apparently not! Now investors will be cautiously watching Namaste stock over the next few days. At the lowest ebb of its rollercoaster February, it traded for just $1.01 CAD on the TSXV. Now, it is selling for $1.13, though it still has a steep climb ahead to get back to pre-controversy highs of $1.50.
Whether it will get back there remains to be seen; a lot will ride on whether investors trust what's going on at Namaste Technologies.
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