Namaste stock is on a low ebb once again—down 4.17% and selling for $0.69 CAD on the TSXV. According to a press release, Namaste Technologies (TSXV:N) (OTCQB:NXTTF) has been granted a Management Cease Trade Order (MCTO). Unfortunately, the news has kicked off another stock decline.
Can anything rescue Namaste stock? These shares are finding it very difficult to recover from a shaky period.
The MCTO was granted because Namaste Technologies failed to file its annual financial statement for the fiscal year ended November 30th, 2018. The deadline for filing was yesterday, April 1st. Namaste cited a change in auditors as the reason for the delay and needs extended time for newly appointed auditor, Baker Tilly WM LLP, to complete its audit.
The MCTO will remain in effect until such a time that Namaste files its annual statement. A new deadline, May 1st, 2019, has been set. While the MCTO is in effect, Namaste’s CEO and CFO are unable to trade any of their company shares.
However, the general investing public can continue to trade their Namaste stock. But looking at the chart, it seems investors are looking to sell rather than buy.
Fallen on Tough Times
In early March, eyebrows were raised when the company’s then newly appointed auditor, Price Water House Coopers, stepped down from the job. Without giving a definitive reason, the market assumed the worst. Namaste stock fell on this news, losing almost 20% of its value in a 24-hour period.
It has failed to regain since.
Since the fall of 2018, Namaste stock has lost over 80% of its value. The company was hit by a wave of controversy surrounding former CEO Sean Dollinger and a Citron report claiming misconduct at the company. He was removed from his position in February.
Between reports citing misconduct, the termination of its CEO, auditor changes, and missing filing deadlines, Namaste stock has had to try and weather a particularly nasty storm.
Choklat and Edibles
But it’s not all bad news. With the aim of entering the Canadian cannabis-infused edibles market, the company recently acquired a 49% stake in craft chocolatiers Choklat.
When the edibles market becomes legal across Canada (expected in late 2019), Namaste Technologies will have exposure to an industry expected to be worth $3 billion CAD.
If it can capitalize on this, then investors may finally see some reason to stick around.
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