This post first appeared on Micro Cap Daily
Namaste Technologies, Inc. (OTCQB: NXTTF) stock price continues to decline, and even though the price drop is slow, it still progresses steadily. The company had seen a large decline in September 2018, when the price dropped from $3 to $1.5 in about two weeks. The price then made several additional attempts at growth, but most of them were weak and short-lived. As 2018 progressed, the price went going further and further down, until it reached $0.5 in late December.
The situation took a positive turn in early 2019, and NXTTF price saw significant growth on January 1st. The growth allowed it to breach the resistance at $1, and grow towards $1.25. It spent the entire January above $1, and many believed that this would be its new, permanent bottom. Unfortunately, the stock price started dropping again in February, and the company’s stock currently trades below $0.5. However, does this make it a bad investment?
Who is Namaste Technologies, Inc.?
Namaste Technologies is a company that operates the world’s largest e-commerce platform dedicated to cannabis, as well as various cannabis-based products. Its ecosystem includes over 30 different websites, and the company operates in more than 20 countries around the world, using various brands.
In terms of products, Namaste and its subsidiaries offer a wide variety of different accessories, vaporizers, and glassware, but also products based on CBD, as well as medical cannabis, which it sells in the Canadian market.
Namaste is a huge organization which aims to offer only the best products to its users. As part of achieving this goal, the company also aims to acquire advanced technologies that can optimize and personalize their consumers’ on-site experience. The firm develops these technologies itself, but it also acquires other companies with innovative, advanced ideas and products.
Examples of this are Canada’s first Health Canada-compliant telemedicine application, NamasteMD.com, as well as Findify AB — an AI and Machine Learning firm that Namaste acquired in May 2018. Findify’s technology precisely shows what Namaste is looking for, as the firm’s AI algorithms allow full personalization and optimization of the buying experience.
Namaste is known for focusing on new, the cutting-edge tech that will make its customers’ user experience enhanced and more satisfying. However, as there is always room for improvement in this field, and the technology constantly advances — Namaste itself will continue with the development and acquisition of new and innovative technologies.
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Namaste’s recent progress and problems
Namaste was doing rather well in the first half of 2018, and the peak of its success came in late August after the company announced the appointment of new COO, David Giardino, as well as the final inspection by Health Canada. What followed was a large surge in its stock price, which continued as the company entered a revenue-sharing agreement with Canvas MedTech, and announced a supply agreement with Bonify.
The business was exploding, and Namaste entered numerous other agreements throughout August, which forced the price even higher. In September, the company stock price reached its peak, and Namaste announced a 300% growth in revenue in Canada during the month of August.
The price started falling in mid-September, only to once again turn around and surge even higher, this time reaching the resistance level at $3. However, this did not last for long, and the price was back at $1.5 within days. One of the potential reasons was an equity alert when Rosen law firm filed a securities class action lawsuit against Namaste. In October, however, the price surged again, although it was weaker and short-lived.
The legal issues did not go away as quickly as everyone had hoped, and Namaste stock price started losing value. The company was investigated by additional law firms, and alerts regarding Namaste came from all sides. With a situation like that, its’ stock price held on pretty well, as a much worse alternative was possible.
Namaste continued its business as best as it could, considering the circumstances, which continued for months. The company even managed to grow and advance, and expand towards the edible markets with additional acquisitions. However, the biggest hit came only weeks ago, in the first days of April, when the cease trade order was issued by the Ontario Securities Commission, stating that: “the Director made an order under paragraphs 2 and 2.1 of subsection 127(1) of the Act and subsection 127 (4.1) of the Act that the Respondent cease trading in and acquisitions of, whether direct or indirect, the securities of Namaste Technologies Inc. until two full business days following the receipt by the Commission of all filings Namaste Technologies Inc. is required to make under Ontario securities law, or further order of the Director.”
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This situation is the reason why the company’s stock struggles to maintain its stability or grow further, as many clearly see a partnership with Namaste as an excellent business opportunity. However, there is always the possibility that the company will manage to resolve its problems sooner, rather than later. Whenever it happens, its stock price is likely to take the first opportunity to grow to the old heights. It might even exceed them, as the company proved that it is more than capable to advance and grow, even under extremely difficult circumstances. We will be updating on Namaste when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Namaste.
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Disclosure: we hold no position in Namaste either long or short and we have not been compensated for this article.
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This post first appeared on Micro Cap Daily