Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) hit a low of $1.50, a more than 50% drop from recent highs after noted shorter Andrew Left of Citron Research tweeted that “Citron proves without a doubt the fraud being committed at Namaste Tech $n $nxttf. This $700 mil company will be a 0 one regulators and accountants read.
The attack by Citron has resulted in 6 lawsuits to be filed by the law firms Bernstein, Brager, Bronstein, Open PR World, Rosen and Schall. Namaste responded on October 9 stating “The Company wishes to respond to these claims and inform shareholders that its NASDAQ application is progressing but has not yet been accepted or approved, that the Company’s sale of its US assets was not to a “related party” and was not a “related party transaction” as defined under applicable Canadian securities laws and that other assertions made by Citron are equally inaccurate and misleading. The Company intends on vigorously defending these claims.”
Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) describes itself as Your Everything Cannabis Store™. Namaste operates the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands. Namaste’s product offering through its subsidiaries includes vaporizers, glassware, accessories, CBD products. The Company’s wholly owned subsidiary, Cannmart Inc. has received Canada’s first medical cannabis sales license as a non-cultivator. Namaste has developed and acquired innovative technology platforms including NamasteMD.com, and in May 2018 the Company acquired a leading e-commerce AI and Machine Learning Company, Findify AB
The Company is led by CEO Sean Dollinger a serial entrepreneur with a history of founding and successfully operating several start-up companies mainly focused on e-commerce. Sean started selling vaporizers online and the business soon took off. Currently the Company has a huge web presence and international internet distribution network that records traffic from over 180 countries. The company offers virtually all high end brand vaporizers. Some of Namaste’s websites include namastevapes.ca, namastevaporizers.co.uk, namastevaporizers.ie, everyonedoesit.com, everyonedoesit.co.uk, everyonedoesit.ca,namasteMD.com and grizzlyoriginals.com. Namaste also has majority market share in Europe and Australia, and operations in the United Kingdom, Canada and Germany and has opened new supply channels into emerging markets, which include Brazil, Mexico and Chile Namaste has an ambitious vision to become the Amazon of medical marijuana, providing the biggest inventory of vaporizers and cannabis products and accessories on the planet.
2018 has been an incredible year for Namaste; the Company achieved a 300% month-on-month growth rate in sales. In the month of August of 2018, the Company generated $1.65M in revenue which represents a 50% increase in revenue in comparison with August of 2017 after consideration of the loss of revenue due to Namaste divesting its US assets that were incorporated into its 2017 sales. The Company has also achieved over 300% growth on its Canadian websites, which now includes over 17,000 customers.
Recent important events for Namaste include appointing PricewaterhouseCoopers LLP as its new auditor to replace MNP LLP as Namaste’s auditor. The Company also announced a bought deal financing with Eight Capital at a price per Unit of $3.00 for gross proceeds of $45,000,000.
To Find out the inside Scoop on Namaste Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
Seans last youtube video was on September 26 after the Company announced the $45 million bought deal. Sean made it clear he would not be making any more videos for the next 3 weeks until the deal closes. He said “Yes we are sitting on $40 million in cash, people want us to be the Amazon of cannabis, it’s not even people that’s what we’re developing, we’re developing a platform. We have now received our sales license that allows us to start selling cannabis. If we want to ensure we are ready for the season we have to make sure we have enough product. If we went ahead and spent $20 or $30 million dollars to build out our technology team and we’re putting up restraints. I would come on and say we have a great cash position. But with the change of the law just a few weeks ago where we are now allowed prefilled packaging? That’s a game changer for Namaste.”
The Citron Research report as well as the lawsuits claim that “The Complaint alleges Namaste made materially false and/or misleading statements and/or failed to disclose that: (1) Namaste had sold its wholly-owned U.S. subsidiary to Namaste executives; (2) consequently, Namaste did not sell its U.S. subsidiary in an arm’s length transaction; and (3) as a result, defendants’ statements about the company’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
In its response Namaste said “The Company wishes to respond to these claims and inform shareholders that its NASDAQ application is progressing but has not yet been accepted or approved, that the Company’s sale of its US assets was not to a “related party” and was not a “related party transaction” as defined under applicable Canadian securities laws and that other assertions made by Citron are equally inaccurate and misleading.
We have a Monster Pick Coming. Subscribe Right Now!
Currently trading at a $469 million market valuation Namaste is fully funded going forward with $43.9 million $CAD war chest in the treasury, virtually no debt and fast growing sales reporting $14,627,161 in revenues more than double for the same period last year for the 9 months ended May 31, 2018. The stock is trading at a 50% discount to its recent highs due to Citron and the 6 lawsuits that followed. It is important to note that the principals of Citron hold a short position in any of the securities profiled on the site and they have been wrong before. Namaste is an exciting Company very well positioned to cash in on the coming Canadian Cannabis craze; they are one of the largest online retailer for medical cannabis delivery systems globally operating e-commerce sites in over 20 countries with distribution hubs located around the world. Namaste has an ambitious vision to become the Amazon of medical marijuana and they have a competitive advantage in place with an already established web presence with domains that have been around for years. 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.
Sign Up now for our 100% FREE Penny Stock Newsletter
Disclosure: we hold no position in Namaste either long or short and we have not been compensated for this article.