Shares of Namaste Technologies (CVE:N) (OTCMKTS:NXTTF) rose Friday after interim CEO Meni Morim reached out to shareholders via a letter in a bid to gain their support and address the forced departure of former CEO Sean Dollinger.
Throughout the missive, Morim stressed that the cannabis company was in a great position and suggested that investors should focus on communications they receive from the Toronto company and ignore rumors circulating since Dollinger’s abrupt exit.
“In short, the management team’s focus continues to be on executing our strategic plan, growing the business and creating shareholder value for you, Namaste’s owners,” Morim wrote. “That is our mandate, and we are moving full-steam ahead.”
Investors cheered Morim’s response, sending Namaste shares up 11% to C$1.13 in afternoon trade Friday.
Earlier this month Namaste said that following an investigation by a special committee of the board of directors, it terminated Sean Dollinger as CEO. The company also said that its board had launched a strategic review to consider “all value-maximizing alternatives,” including selling the company after receiving interest from a potential bidder.
On the list of Namaste’s achievements is that NamasteMD, its online patient portal, has been redesigned and will be released in the coming weeks. “This will improve performance, user experience and enable rapid deployments in new markets,” Morim pointed out.
Via Cannmart, the company also has a license to distribute medical cannabis in Canada as well as strong supply agreements. “The selection on Cannmart continues to grow and we are working on improving the buying experience,” Morim said.
Namaste’s business development team also boasts a robust pipeline of partnerships which will continue to strengthen the company’s position. On top of this, the company’s “strong” cash position will allow for the execution of strategy and continued innovation, according to Morim.
Lastly, the company is also nearing the completion of its replacement of legacy software with a new ERP system to improve its operational efficiency and reporting capabilities.
Contact Ellen Kelleher at [email protected]