Namaste Technologies Inc (OTCMKTS:NXTTF) remains under pressure even on the management reiterating long-term growth prospects. A series of management scuffle resulted in the ousting of former CEO Sean Dollinger, a move that appears to have triggered a sell-off of the stock. The company reached an agreement with the former CEO appears to have calmed the waters, but the stock is still languishing near all-time lows.
Share Price Analysis
The stock has taken a significant hit over the past few months, depicted by a 60% slide from one-year lows. Amidst the slide, the company has continued to strengthen its prospects in the multi-billion industry. For starters, the company has moved to pursue opportunities in the U.K with the acquisition of U.K Based AF trading Ltd.In addition, the company has received a boost on the Israeli government approving the export of medical cannabis. Late last year the company reached an agreement to acquire additional equity in Pineapple Express Delivery as part of a drive to invest in innovative companies in pursuit of opportunities for growth.While the stock is still languishing near all-time lows, the prospects of a bounce back, especially on the management squabbles temperatures cooling off, is high. After the recent slide lower, the stock faces a strong resistance level at the $1.0 a share level, on any bounce back. NXTTF Daily ChartA rally followed by a close above the critical resistance level should reaffirm a bounce back from current lows. Above the critical resistance level, the stock should make a run for the $1.80 mark, the next substantial resistance level. Rallying still looks difficult thou as Namaste remains vulnerable to further drops as short sellers remain in firm control given the underlying long-term downtrend.
About Namaste
Namaste is a cannabis-focused company that operates an e-commerce platform for selling a wide variety of products. The company retails vaporizers as well as cannabis smoking accessories through the platform, which is currently available in 26 countries.
Recent Development
Namaste is trying to bounce back after taking a significant hit, following the ousting of the former CEO, a move that resulted in him suing the company. The company has since reached an agreement with the former executive and co-founder. Under the terms of the agreement, Dollinger has agreed to take over the senior advisor role.
“The events of the past few weeks have been difficult for everyone involved, but we are pleased to have reached a mutually agreed upon settlement that puts the interests of Namaste and our shareholders first,” said Morim. “With this issue behind us, Namaste can focus on what matters most -- growing our business and creating shareholder value.”
The company has since appointed former Space X Executive Branden Spikes as the Chairman of the board. With the management squabbles now behind, the new management team is now focused on growing the business and shareholder value. According to the Interim CEO, Meni Morim, they have sufficient cash position backed by a strategic plan for driving innovation and growth.
U.K Expansion
The company has since turned attention toward the U.K where it is planning to pursue growth opportunities. Namaste has signed a new letter of intent that will see it acquire outstanding shares of CannMart Ltd a subsidiary of Access Fulfillment.With the acquisition, the company gains access to a crucial pharmaceutical distribution license. The license allows the company to push for a level 2 controlled substance license that will enable it start distributing and selling cannabis in the U.K. According to the CEO, the U.K presents a significant growth opportunity that it intends to pursue with the new acquisition.
Israel Opportunity
Namaste has also received a significant boost in Israel with its partner Cannbit. The approval of cannabis exports paves the way for the two to start exporting their cannabis produces as they look to target a wider target audience. Plans are already underway to start importing medical cannabis from the Israel market to Canada and other markets where demand is high.
"Our goal is to import medical cannabis from the Israeli market and offer it to Canadian patients. Furthermore, this approval opens the door for Namaste to potentially import product into other key markets,” said Mr. Dollinger.
What Next For Namaste?
Namaste appears to have hit rock bottom in the market if recent price action is anything to go by. With management squabbles now sorted out, the stock looks set to bottom out on the management affirming they are focused on pursuing growth opportunities. For players looking for a long-term buy and hold, NXTTF looks to be an ideal play.We will be updating our subscribers as soon as we know more. For the latest updates on NXTTF, sign up below!Disclosure: We have no position in NXTTF and have not been compensated for this article.
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