The IIROC halts Namaste stock at the bell this morning, shortly after Namaste Technologies (TSXV:N) (OTCQB:NXTTF) announces its entrance into the cannabis edibles market. So what's going on with N stock and NXTTF stock?
IIROC Halts Namaste Stock
IIROC, the Investment Industry Regulatory Organization of Canada, is the national self-regulatory organization that oversees all investment dealers and trading activity on debt and equity marketplace in Canada. The organization reported that 'dissemination' was the reasoning behind today's halt of Namaste stock. Dissemination is the act of spreading information in a wide manner. It remains unknown at this time if the regulators behind the OTCQB did its own research or halted NXTTF due to the IIROC reports.
The Namaste stock trade halt announcement explains:
"IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market."
The regulating body claims that a halt is often imposed to allow the market to digest the information and to create a level playing field among investors. All TSX listed companies are required to submit press release material before that information is disseminated over the news. The regulator explains that often these halts last "less than two hours."
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Namaste Technologies Enters the Edibles Market
Namaste's early morning press release has caused quite the scene, and rightfully so. The cannabis producer and distributor announced the acquisition of Calgary, Alberta-based Choklat Inc. Namaste will acquire 49% of the issued and outstanding shares of the premium chocolate manufacturer for $1.5 million in cash.
This news is monumental for the company and namaste stock, due to the fact that Choklat just entered into a supply relationship with Sobeys. The company already has products in 25 of its stores in the province of Albert with a goal to roll out to all of Western Canada in the next few months.
“Choklat is a great acquisition for us with a vast offering of existing products that can be easily infused with THC or CBD and sold as edibles,” said Meni Morim, Interim CEO of Namaste Technologies.
Namaste's movement into the emerging edibles market in Canada is a huge step for the cannabis company. Canadian parliament is set to finalize edibles regulations by the end of 2019. Currently, cannabis stocks are trading red across the board. When Namaste stock resumes trading, it is highly likely that investors will buy up this stock despite today's bear market.
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