Namaste Technologies Inc. (TSXV:N) (OTCMKTS:NXTTF) has fired CEO Sean Dollinger amidst accusations of short-selling following a company-led internal investigation, according to a statement released on Monday.
The firing stems from allegations of wrongdoing regarding the sale of Namaste’s subsidiary Dollinger Enterprises US Inc., along with what the company referred to as “subsequent transactions” involving Dollinger and Namaste's head of marketing David Hughes.
Dollinger was accused of committing “breaches of fiduciary duty” as well as “evidence of self-dealing.” He has been removed from his position as CEO of the company and Namaste will commence legal action against him as well, “for damages and disgorgement.”
Effective immediately, the board has appointed Meni Morim, Namaste’s Chief Product Officer and Director of Artificial Intelligence since May 2018 as interim CEO.
[embedded content]A video, alleging that Sean Dollinger lied about Namaste's Nasdaq listing
Citron Research strikes again
Namaste first began their internal investigation following a short-seller report released by Citron Research in October 2018. The report alleged a number of criminal activities, including the hiding of U.S. assets to gain a listing on the NASDAQ exchange.
According to Andrew Left, head of Citron Research, Dollinger claimed to have sold the subsidiary to an arms’ length party out of Europe, a necessary move to trade on a U.S. exchange. Public documents clearly showed that Dollinger sold the property to both Hughes and Paul Burns, Namaste’s HR Manager since 2016.
Citron proves without a doubt the fraud being committed at Namaste Tech . This $700 mil company will be a 0 one regulators and accountants read. https://t.co/c7c2uphNzM
– Citron Research (@CitronResearch) October 4, 2018
“Rarely in its history has Citron seen a fraud so blatant: for context, we honestly view Sean Dollinger as a walking securities violation,” read the report from Citron. “If Namaste was a [U.S.] traded company it would be halted and Dollinger would probably face criminal charges.”
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Strategic review process initiated
The company also announced the initiation of a strategic review process to explore any and all value maximizing possibilities. According to a statement that could include the possible sale of the company.
“The Company does not intend to set a definite schedule to complete its evaluation or process and cautions that there are no assurances or guarantees the process will result in a transaction or, if a transaction is undertaken, of the terms or timing of such a transaction,” wrote Namaste in a statement.
More on this story as it develops...
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