This post first appeared on Micro Cap Daily
Namaste Technologies Inc (OTCQB: NXTTF) stock price has been showing signs of recovery in the last week. The price, which has been dropping gradually ever since late September, saw only one noteworthy growth, during the first week of January 2019. After that, the price started dropping once again, reaching the lowest point in the past year.
While NXTTF value reached low points before, it has been quite a long time before it dropped below $0.5 per stock. However, this finally happened in mid-April. But, things did not end there. Instead, the price started seeing a sudden growth, and while it was by no means as massive as the one in September 2018, or even as the one in January 2019 — it was enough to take it above $0.5 and turn this resistance back into its strongest support.
What should you know about Namaste Technologies?
One of the most important things to know about Namaste Technologies is that this is a massive, global cannabis e-commerce platform that operates in over 20 countries, on over 30 websites, and under numerous different brands. This is a massive company that acts as an everything-you-need cannabis store.
Not only that, but the company is constantly looking to improve its service, offering, as well as their users’ experience. While it is known for developing its own, advanced technology — Namaste is also no stranger to purchasing companies that are developing new, promising tech. One such example is Findify AB, an AI and Machine Learning firm which Namaste bought in May 2018.
The company now uses Findify’s algorithms to optimize and personalize their website visitors’ buying experience.
As for its products, Namaste is offering pretty much anything — from accessories and vaporizers to full CBD products and medical cannabis.
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Namaste’s struggle in 2018 and 2019
According to everything mentioned above, it is clear that Namaste has been a fast-growing, rapidly-developing company which holds a lot of potential to be one of the dominant forces in the cannabis industry. So why has its stock price seen so much struggling in the past six months?
The drop was, of course, no coincidence. In fact, it was caused by a short-seller Andrew Left, and his Citron Research. The company published reports regarding Namaste back in September 2018, just as Namaste was preparing to join Nasdaq. The reports indicated that Nasdaq will never accept Namaste, and that the company’s stock would never grow.
In addition, the report also stated that Namaste was engaged in stock promotion by organizing parties for shareholders who did not sell their stock for 90 days. These allegations would be bad for the firm even if there were no securities laws. As soon as the reports were published, the company’s board of directors started losing members. Meanwhile, law firms started going after Namaste, and in light of all the accusations, the company itself announced that it would launch the investigation to determine whether or not the allegations were true.
While Citron Research is known for going after successful firms and manipulating their stock price for its own gain, allegations such as these were not just something that Namaste could ignore. Before long, the company announced the termination of its CEO, Sean Dollinger. It also commenced legal action against him, although the case ended with the settlement by February 2019.
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The company ended up in a lot of legal problems due to these reports and its former CEO’s actions. The problems also led to a number of executives leaving, which provided Namaste with a fresh start now that things appear to be quieting down. The company already made several great moves, and its stock price’s recent activity reflects it. Before long, Namaste is likely to be back on its feet, and the best time to invest in it is now, while the price is still low. 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