Namaste Technologies Inc. (OTCMKTS:NXTTF) has experienced plenty of controversies while its peers have been establishing long-term loyalties from customers and investors. At $0.55 currently, Namaste stock is considered a bargain in some circles.
On the surface, NXTTF stock appears to be full of potential but the loss of investor trust seems like a massive battle for the company trying to establish itself in the growing industry.
Early last year Namaste which runs a medical cannabis business and an online selling platform for vaporizers and cannabis product had its business model well on track. Their NamasteMd website recorded a 300% growth with the company reporting around $1.65 million in revenue.
The Decline of Namaste Stock
Namaste stock tanked following a Citron report that alleged that there was a fraud in the company. The company has had to deal with the problem of legalization of recreational-use marijuana in Canada. As a result, there is a shift in the market from telemedicine applications as well as the need for medical questioning.
Following the Citron report, Sean Dollinger left as CEO and currently Namaste is operating under an interim CEO who expects to turn thing around. The company delayed its quarterly results and the only positive news for investors is that they are enhancing the user experience of their online platform.
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Namaste Stock’s Potential
Namaste stock is currently selling around $0.50 levels, which is a big contrast from just eight months ago when the stock was eyeing being uplisted in the NASDAQ exchange. There is however potential on Namaste stock for investors who are patient.
They added recently Kenneth Jones a former PWC partner into their board of directors. This is a sign that Namaste is straightening its tie. The addition of Jones is a sigh of relief regarding fraud allegation because of his vast accounting experience.
In the short-term Namaste’s stock is unlikely to recover until they appoint a permanent and strong CEO who can regain investors trust.
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Disclosure: we hold no position in $NXTTF, either long or short, and we have not been compensated for this article.