Earlier this week, Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) announced that, following an investigation by a Special Committee of the Board of Directors, the Board decided to terminate the employment of Sean Dollinger as Chief Executive Officer of the company for cause and remove him from his position as Director.
Since then, Sean has battled back, commencing legal actions against the company.
In the release from Namaste Technologies, the company clearly states that “In October 2018, the Board was informed of certain allegations,” and that based on findings of a Special Committee “the Board has terminated the employment of Sean Dollinger,” making it pretty clear that the Namaste Board of Directors was behind this decision.
In his recent interview on Midas Letter, however, Sean Dollinger stated that “the Special Committee obviously, that was put together to make this decision, were two individuals…who joined the Board just last March,” making it sound like this decision was that of just two rogue individuals.
Regardless of which side of the story is accurate, it should be noted as a reminder that Sean’s uncle, Sefi Dollinger., was appointed Chairman of Namaste back in April 2018 following the resignation of Donald Nickless.
Sefi Dollinger was Selling Shares Last Week
As insider transactions can often be a useful indicator of sentiment within a company, we decided to look into recent SEDI filings to see how the Namaste Board was really feeling about the whole situation to find that Sefi sold a block just last week.
While he only sold 10,000 shares out of his 1.14 million shares, the fact that Sefi was selling says more than a sale from almost anyone else on the Namaste cap. table. Beyond that, the fact that he locked in a sale at $1.59 CAD per share makes him luckier than some Namaste shareholders that are still holding the bag down at $1.02 CAD per share where they currently sit.
When the next weekly SEDI reports come out, we’ll be able to see transactions that took place subsequent to the one for the week that ended February 6th. In the meantime, we’ll be keeping a close eye on the situation to determine if the current shakeup will lead to a true turnaround at the company, or maybe even a sale. After all, “the Board of Directors of the Company (the “Board”) has launched a strategic review process to consider all value-maximizing alternatives.”
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