Namaste Technologies Inc (OTCMKTS: NXTTF) To Resume Uptrend After Positive Corporate Update

Namaste Technologies Inc (OTCMKTS: NXTTF) has had its fair share of controversies but appears to be coming through, if recent price action activity is anything to go by. The stock has posted tremendous gains in recent weeks on the Company announcing plans to invest in technology and infrastructure to cater to domestic and international licensed producers.

Namaste Technologies Price Analysis

The company has also made a string of changes, mostly targeting the management, as it seeks to strengthen the business and the foundational technology upon which it was built on. An advisory board has already come into place, tasked with the responsibility of providing additional expertise and strength to compliment the board of directors.

Shares of Namaste Technologies have since jumped from lows of $0.39 to highs of $0.72 in recent sessions. While the stock has pulled lower, the pullback appears to be a minor correction pending further movements on the upside.

Standing in the way of the short-term momentum turning bullish, in the wake of the recent crash, is the $0.72 resistance level. Namaste Technologies needs to rally and find support above the resistance level to affirm its break out credentials further.

Above the $0.72 mark, the stock would be well positioned to make a run for the $1.20 level, which is the next resistance level. A rally followed by a close above the 1.20 level should bring to an end a sell-off wave that had threatened to plunge the stock to all-time lows.

What Does Namaste Technologies Do?

Namaste Technologies operates as an e-commerce Company mostly focusing on cannabis products. The company’s core business revolves around connecting medical clients with health care practitioners for the issuance or renewal of cannabis prescriptions.

Why is Namaste Technologies Bottoming Out?

Namaste Technologies has started showing signs of bottoming out after issuing a corporate update with respect to management appointment as well as echoing a new corporate strategy.  The company has been under immense pressure in recent weeks on failing to post audited financial results for the fiscal year ended November 30, 2018.

The company has since applied and secured a management, cease trade order that bars the CEO and CFO from trading the company’s shares until such a time financial results are made available.

Corporate Update

The management reiterating the corporate strategy as well as confirming a new appointment to the board of directors and providing corporate updates continues to revitalize investor sentiments in the stock.

Namaste Technologies has since confirmed the appointment of Kenneth Jones, an experienced business leader, to chair the audit committee. The appointment follows the formation of an Advisory board that the company hopes will provide additional expertise and strength to the board of directors.

“We’re making the necessary changes to strengthen our business, our Board of Directors and the foundational technology upon which the Company was built. Ken brings a wealth of experience and financial knowledge to enhance Namaste’s overall practices and governance as chair of the Audit Committee. We are honored to welcome Ken to our Board of Directors,” stated interim CEO Meni Morim.

Corporate Strategy

The Chief Executive Officer has also confirmed they are in the process of making changes internally to deliver results externally. The management expects the changes to have a positive impact on the company’s short term and long-term outlook.

In relation to the corporate strategy, Namaste Technology continues to invest in technology and infrastructure all in the effort of catering to the needs of licensed cannabis producers, cultivators, and ancillary device producers.

Namaste Technologies has also made several important changes to its CannMart website as it looks to strengthen the primary distribution channel for its cannabis products.

Bottom Line

While Namaste Technologies remains engulfed in a long-term bear trend, it has started showing signs of bottoming out. Market sentiments have inched higher in response to the recent corporate update that suggests the management is working round the clock to reinvigorate the company’s long-term prospects

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Disclosure: We have no position in NXTTF and have not been compensated for this article.