Namaste Technologies Inc. (OTCMKTS
NXTTF stock is already down by more than 10%, for the year, a glaring underperformance that is in stark contrast to the bullish momentum in the cannabis sector.
The underperformance does not come as a surprise as a wave of controversies that resulted in the ousting on Chief Executive Officer continues to dent investors trust in Namaste stock. Allegations of fraud by research firm Citron Research has continued to compound the situation.
In the recent past, the British Columbia Securities Commission has granted the company a cease to order application, following a delay in the filling of the audited financial statements. With the order in places, the public who are not insiders can continue to trade Namaste stock.
However, insiders led by CEO and CFO are no longer allowed to trade the Namaste stock until such a time when financial results are made public.
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Namaste Strategic Investments
Amidst the controversies, the management team has moved to reinvigorate Namaste Technologies prospects with the acquisition of Pineapple Express Delivery. The acquisition is part of the company’s strategy of investing in innovative companies that have the potential to generate long-term value.
Pineapple Express expands Namaste’s footprint into the cannabis delivery business. Pineapple boasts of 10-years’ worth of experience when it comes to offering 60-minute delivery services across multiple industries in Canada.
“The acquisition of the shares of Pineapple Express is an important component in Namaste’s growth strategy and customer service platform, and shows follow-through, as we continue to operate business as usual and moving forward,” explained Namaste CEO Meni Morim.
Namaste Technologies has also set sights on the edibles market with the purchase of 49% shares of Calgary-based chocolate firm, Choklat Inc. for $1.5 million. The acquisition is a big coup given that Choklat boasts of a diverse product line that can be infused with THC and CBD for sale as edibles.
While Namaste stock has taken a significant hit, it will be interesting to see how investors react to a string of positive developments after the controversies of 2018.
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Disclosure: we hold no position in $NXTTF, either long or short, and we have not been compensated for this article.