Namaste Technologies (N) CEO Sean Dollinger has been a regular target of this site, and for good reason. It was announced today that he has been terminated by Namaste and is being investigated. Based on the timing of the investigation and what they are looking at, we believe that what we dug up on Dollinger back in September, 2018 helped greatly in this process.
The special committee who decided to look into Dollinger was formed a couple weeks after our story dropped about Dollingers shady past, Citron linked to it shortly after, and the rest is history:
From today’s press release:
The Special Committee’s thorough investigation examined all material allegations against the Company. The only one that was substantiated and required action, as recommended by the Special Committee, related to the sale of Namaste’s US subsidiary, Dollinger Enterprises US Inc., in 2017, and subsequent transactions involving its assets and companies in which Sean Dollinger and Namaste’s head of marketing David Hughes have a beneficial interest, as well as breaches of fiduciary duty by Sean Dollinger and evidence of self-dealing.
Often touted as ‘the most exciting cannabis company’, or even ‘the most exciting company in the world’ by its founder, Dollinger has an ego unparalleled in the public markets. This dude makes Patrick Bateman look humble.
In a recent piece with The Sydney Morning Herald Dollinger said:
“I’m not saying I’m [Jeff] Bezos or [Richard] Branson or a [Elon] Musk yet, but I am hopefully one day going to have a company as large as theirs if not bigger,” he says.
It ‘Aint Easy Being Sean
The thing about Dollinger that is so fascinating is he plays the big game. Namaste was running weekly livestreams every Wednesday at 4:20 PM, where he would rant often incoherently on what looked like two hours of sleep about how difficult it was to drop ship packages from China and how people needed to be more patient with him and the company about the overall ‘vision.’
As Namaste’s stock continued to tank, and Dollinger was caught by us first, and later Citron for confirming a NASDAQ acceptance that never happened, a sexy nurse shareholder party disaster gone wrong, a botched Tilray deal and Dollinger himself selling shares at an inflated price, comments on the Namaste 420 Livestreams began to get a bit ugly as its disciples, much like those leaving Scientology finally began to see the truth.
So what is Dollinger’s brilliant plan?
There’s only one problem with Dollinger’s master plan, you can’t delete the internet. People like me made backups of every Namaste 420 livestream as I knew they would eventually be deleted. In August 2018 Namaste deleted their livestream where Dollinger stated 5 times with pride that the company had been accepted onto the NASDAQ because of his hard work.
We Knew This Was Coming
We made a copy, uploaded it and it still sits there today. Dollinger’s rationale for deleting the videos was the quality of the videos themselves, and while I do agree they do look like something from a 14 year old in his parents basement, I believe it has more to do with the content inside of the videos.
As Namaste bleeds money and its margins get thinner and thinner as more compete for space in its carved out dropshipping vape niche Dollinger wants to jump out of this helicopter as unscathed as he can, but with the most cash. The problem is, Dollinger went big with this one, this isn’t selling condo’s in the Bahamas, managing a strip mall taco ship or doing a little ‘give me your money and I’ll give you an 8% return gaurenteed’ kind of deal, this is a pubco in a hot space with millions of eyes on it.
It’s unlikely Dollinger will be able to hide effectively after this whole thing unravels.
It’s no secret that Dollinger wants to get rich off this, and God bless him for it. He is the CEO of a once hot cannabis company, he deserves to get paid. But the way he is doing is is very unethical. New Cannabis Ventures wrote a piece about his little scheme recently,
What was disturbing about the sale was that it was conducted like he was under pressure, with all of the shares sold in a single day after the price of the stock had already collapsed. This chart shows the prices from 12/31/17 through 12/20/18, the day Dollinger dumped his shares, driving the stock to a 52-week low.
Compounding the perception that these sales were troubling is that the company revealed on January 10th that it had repurchased 460,900 shares just the day before Dollinger sold, paying an average of C$1.08, about 24% higher than where Dollinger sold.
Stacking the Paper Trail
Dollinger has also tried to erase his entire previous business where he was selling condos in The Bahamas, building websites, encouraging people to not invest in the stock market and to give him their money for a promised 8% return. Galleries of these beautiful homes could be found on the old site, with no addresses or tangible information.
More of this information can be found in our previous piece: