Namaste Technologies (TSXV: N) (OTCMKTS: NXTTF), which may face legal action from the ousted CEO Sean Dollinger, has issued a letter to its shareholders.
Shares of the small-cap cannabis company closed up 9.69% on Friday. However, over the past five days, the share price fell 17.31% after news that the company’s board of directors removed Dollinger from his position and launched a strategic review process to examine different options, including exploring the sale of the company.
In the letter, Meni Morim, interim CEO of Namaste, asked shareholders to ignore rumors and speculation circling in the market after the removal of Dollinger. He said that Namaste “is a fantastic company with great people, products and prospects.”
“We have a strong, talented management team in place, and we all believe the future of Namaste is bright. I’m incredibly humbled and excited by the opportunity I have as Interim CEO to lead this company forward, but it’s truly not about me; Namaste is bigger than any one individual,” Morim said in the letter.
He told shareholders that Namaste is in a great position and the management team’s focus is on executing “our strategic plan, growing the business and creating shareholder value for you, Namaste’s owners. That is our mandate, and we are moving full-steam ahead.”
“We have a license to distribute medical cannabis in Canada and strong supply agreements. The selection on Cannmart continues to grow, and we are working on improving the buying experience. Our business development team led by our Chief Strategy Officer has a healthy pipeline of partnerships which will continue to strengthen the position of the company. We have a strong cash position that enables us to execute on our strategy and continue to innovate,” Morim said.
On the other hand, Dollinger said he is going to take a legal action against Namaste. In a statement, the ousted CEO said:
“I intend to take immediate legal action to begin setting the record straight and clearing any misconceptions caused by the inaccurate allegations levelled against me. What saddens me most is that for the time being, I will not be able to continue steering the incredible journey of growth for the company’s wonderful shareholders and investors, who believed in me and what we were creating.”
