Cannabis tech firm sacks CEO, takes legal action, review

TORONTO — Shares of cannabis company Namaste Technologies Inc. fell by as much as 27 per cent after it fired its chief executive, announced plans to commence legal action against him and launched a strategic review process to examine its options.

The Toronto-based firm, which operates an e-commerce platform and a portal that connects patients with doctors, said Sean Dollinger’s termination from the CEO’s position came after an investigation by a special committee of its board of directors, who looked into allegations raised in October by prominent short seller Citron Research.

Namaste concluded there were breaches of fiduciary duty by Dollinger and evidence of self-dealing. “In light of these findings and the special committee recommendations, the board concluded it is in the best interest of Namaste that Sean Dollinger be terminated from his role as CEO for cause and removed as director of the company.”

Namaste’s stock fell in the wake of the news by as much as 27 per cent to $1.01 on the TSX Venture Exchange, from its previous close of $1.38. The shares were trading at $1.175 by late afternoon.

Meni Morim has been appointed interim CEO of Namaste.

Dollinger did not respond to a request for comment via LinkedIn.

Namaste said it had a “recent expression of interest” and its board has initiated a formal strategic review to consider all “valuemaximizing alternatives,” which could include a sale of the company or other transactions.