It’s been a rough week for Namaste Technologies (N.V) after Tilray backed out their deal with the company on Friday when a shareholder pledge party broke a couple of laws laid out in the Cannabis Act. The general sentiment from Namaste shareholders was that the pledge party was a pretty stupid idea, one that they paid for. This is Namaste CEO Sean Dollinger’s first run at a pubco, and he has made some pretty large blunders thus far.
The stock has taken a bit of a dive the past few days after a pretty epic bull run.
Lying To Investors
Dollingers biggest blunder thus far happened on July 25th where he lied several times on a Namaste 420 livestream stating that the company had been accepted onto the NASDAQ, he doubled down by saying they were accepted onto the 2nd tier.
Both of these statements were lies.
Retail investors didn’t seem to care and chanted #Namaste420 as if Jim Jones was hosting the livestream. Dollinger has also dodged the question of a reverse consolidation about 35 times as he doesn’t want to break the hearts of the retail investors who have inflated the share price thus far.
Who is Sean Dollinger?
This is where things get a little weird, we spent about 14 hours digging into this guys past after a few pots of coffee, we only intended to do a brief scan, but as we found more and more it was like a drug, we couldn’t stop.
Six years ago Namaste CEO Sean Dollinger was managing a 3.5 star Mexican restaurant in a Winnipeg strip mall, today he is the CEO of a major cannabis company valued at around 1 billion dollars.
Talk about the hero’s journey.
So what happened in between?
Some pretty strange stuff that has almost been erased, but not quite. This piece will focus on Sean’s previous company, Dollinger Enterprises which was sold to a company in Ireland in 2017, funny enough is also where Dollinger Enterprises Europe was originally registered… but we will give him the benefit of the doubt that it’s just a coincidence.
All pages from the old Dollinger Enterprises domain now re-direct to Dollinger’s fresh new site that has none of the questionable content from the Dollinger Enterprise era (2014-2016) that we will be featuring here.
Thanks to The Unarchiver and someone’s inability to delete subdomains, we have the previous website for you here and it is a strange one, even for the internet.
An 8% Return at Dollinger Enterprises, Guaranteed
Dollinger Enterprises consisted of three profit generating pillars:
- web design services
- restaurant branding
- Bahamas real estate
The best thing about Dollinger Enterprises was that it guaranteed its investors an 8.8% annual return. Here is Sean’s sales pitch from Dollinger Enterprises, notice the ironic bashing of investing in ‘the volatile stock market.’
Are you putting your money to work for you? Most conservative investment vehicles, including stocks and bonds just aren’t performing very well these days.On average, the stock market returned 8.8% per year between 1929 and 2011. However, investing in the stock market is extremely volatile: You can expect anywhere between -8% to +18% on any given year. To get a sustained 8% or higher return, you have to invest in 20 year chunks.
Most investors choose to ride out the volatility by combining stock investing with fixed income assets, most commonly bonds. Yet the returns are so low today that you’re really not making any money after taxes, inflation and management fees. And even the bond market isn’t safe, with the US dollar in flux and the EuroZone flirting with collapse.
An 8% Return, Guaranteed, Plus Equity
What if you could get a guaranteed 8% return on your investment, plus equity? That’s what Dollinger Enterprises is offering for select investors.
When you invest in Dollinger Enterprises, we’ll contractually bind ourselves to pay you at least 8% a year. On top of that, you get a stake in our company. That means if our company does well, the value of your shares will give you an additional return as well. Furthermore, should we switch from our aggressive growth strategy to a cashflow generating strategy, you’ll also receive healthy dividend checks from your shares.
Bahamas Real Estate
Bahamas real estate scams are rampant.
From the US Embassy Bahamas:
A number of U.S. citizens who have purchased or sold real estate in The Bahamas have reported tremendous difficulties in the process, some even losing their entire life savings.
For example, U.S. citizens have reported that after “purchasing” property in The Bahamas, they discovered that the seller did not have clear and/or indisputable ownership of the property. Some of the incidents reported include high-end real estate development projects on family islands where the development project was not completed and individuals could not get their money returned.
There also have been reports that after the final sale and purchase of property, a second individual appeared with a deed of trust claiming rights to the property, causing long legal disputes that sometimes pend for years and are not resolved in favor of the purchaser. Prospective purchasers are advised to check the veracity and status of the prospective seller’s ownership with a trusted attorney and/or title agency. A prospective purchaser may request that the Registrar General’s Office for Deeds and Documents verify the name under which a deed is registered.
It is possible that Dollinger was paying his investors 8.8% out of his own pocket, which is desperate but doesn’t break any laws.
There are no addresses, specific property information, or company assets on the website.
Namaste Is Admittedly A Dropshipping Shop
Namaste’s supply chain is backed by a system called dropshipping. Namaste buys from the products from somewhere after someone purchases them.
This is how most people set up a dropshipping store:
- Build a Shopify store using a free theme.
- Download free tools like Oberlo that sync with Shopify to allow ‘business owners’ to connect to their Ali Express account.
- Using Oberlo’s Chrome extension tool, import all of the data from Ali Express into the Shopify store.
- The store owners sells the product and collects money (usually a 30-50% markup)
- The store owner then gives money to the manufacturer
- Oberlo notifies the manufacturer in China (99% of the time) that a product has sold
- Manufacturer in China mails that product to the buyer
From Namaste Vapes:
Namaste Technologies offers one of the most innovative drop shipping program available that is ideally suited for anyone setting up a new e-commerce site or with an existing site that is looking to expand their product offering. Namaste carries thousands of SKU’s in stock in our warehouses and as a Drop Ship Customer, you will have access to all inventory booked into our system. We can provide you with product content and details in order to populate site data. We have a fully integrated system which will allow the order to flow through your site on to our shipping system. You will automatically receive tracking details when an order is shipped. Drop Ship pricing is exactly the same as the Wholesale pricing as well so you know you will be getting the best margin possible.
Namaste does have a dedicated base of retail investors who will come to its defense wholeheartedly. As the cannabis industry progresses and more spotlights shine on companies and their actions, operations like Namaste are going to keep having to issue press releases explaining themselves and their actions.
Namaste is a unique company in the way they communicate with their shareholders (the weekly YouTube livestream) is a very efficient and cost effective way to do this. More and more companies should use opportunities like this to get their message out there, because as Namaste has shown us, it really doesn’t take much to get people excited in this day and age.