Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Namaste Technologies (OTC:NXTTF) in connection to alleged violations of securities laws by NXTTF. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Namaste Technologies between November 29, 2017 and October 4, 2018.
The class action complaint specifically alleges that during the period in question, NXTTF might have provided false and/or misleading material information, and/or failed to disclose adverse material information, chiefly: that the company sold its US-based subsidiary, which was wholly owned by Namaste, to its own executives; that as a result, the company’s sale of its subsidiary was not made in an arm’s length transaction; and that consequently the company’s statements to the public during the relevant period about its business, operations and prospects were false and/or misleading and/or had no reasonable basis. A Citron Research report published on October 4, 2018 stated that the company’s CEO stated the asset was sold to “an arm’s length party” when in fact it was sold to the company’s own executives, and additionally that the company “lied to its shareholders, Canadian Regulators, US Regulators; and most of all has attempted to hide US assets from the Justice Department in an attempt to obtain a US listing.” This publication was followed by the company’s stock declining more than 10%, or $0.19/share, over two trading days, closing at $1.62/share on October 5th. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Namaste Technologies is is “a worldwide collective of industry experts focused on providing the best cannabis-related products & services available.” Continuing, its description states that Namaste was originally an “international cannabis eCommerce company” that operated in 20 countries, and is currently in the “final stage” of applying for licensing in Canada. It is also developing a “secure telemedicine portal,” Namaste MD, which it says will connect physicians with patients who use medical marijuana. The company trades over-the-counter under the symbol NXTTF.