Namaste Technologies CEO and co-founder Sean Dollinger was terminated by the company in February. Dollinger then immediately threatened the company with a lawsuit, only to be accepted back onto the board within a matter of weeks.
Dollinger now joins co-founder Kory Zelickson in insider status, making inflated dumps and future lower buybacks even more fun as no one has to know about it now.
AMBER ALERT: Has Anyone Seen Kory Zelickson?
In May, 2018 Namaste Technologies co-founder Kory Zelickson stepped down from his insider role with the company. As seen in the SEDI documents, Zelickson held 8.1 million shares when he ceased to be a reporting insider.
This allowed Zelickson to buy and sell shares without public notice, for example, during a pledge period where investors were encouraged to hold. In exchange for not selling, a party was to be thrown for them in a kind of weird hostage-like situation. The idea, although controversial, had legs, but the company wasn’t walking the walk.
Since Dollinger was ‘wrongly terminated’, best friend and co-founder Zelickson hasn’t made a peep, neither has CFO Ken Ngo. Zelickson was a regular on the weekly Namaste 420 livestream, and his friendship with Sean dates back decades back to their time together in Winnipeg, Manitoba.
If someone you knew for decades and someone you started a business with, apparently working together in a garage was ‘wrongly terminated’ years later, wouldn’t you say something?
Either Kory is a really bad guy and did nothing to protect the reputation of his pal, or, it was more of a “wink wink, welcome to the club, Sean.”
Sean Dollinger’s uncle Sefi Dollinger, also an insider, dumped shares on May 14th during the infamous Namaste pledge period, hurting the company’s reputation. If shareholders were encouraged to hold because big things were coming for the company, why was Uncle Sefi unloading? Was Kory also unloading?
Sean was smart enough not to dump during this period, and to his credit, was actually buying up shares – even when Namaste was around the $4 mark.
Sean would wait until December to pull his stunt.
New Cannabis Ventures reported that Sean dumped 2.357 million shares in December, for a $2.056 million profit. This sent the stock into a 52 week low.
It’s not clear why the company took so long to report this repurchase, nor why Dollinger sold shares. The company never released any information about Dollinger’s sales or its repurchase. It certainly seems improper to have the company buy back shares one day before the CEO sold 11% of his holdings.. – New Cannabis Ventures
The unfolding of these events made Dollinger and the company look bad to its investors. This was perhaps the final nail in the coffin for Sean’s quickly cascading public perception problem. Namaste is Dollinger’s first pubco, and it’s natural for mistakes to be made. Now, what if those mistakes could be hidden more effectively from the public?
Well, that’s exactly what happened.
Sean Dollinger ceased to be an insider as of Feb 18th, 2018, just two weeks after his termination.
Today Is a Good Day to Die
The termination hurts Dollinger’s name moving forward, being fired from your first pubco is never a good start. But, let’s look at the bright-side for Sean in this situation which no one is talking about.
By many accounts Namaste has already peaked. It was once a profitable business with healthy margins, no PR or image problem and an army of dedicated retail investors more bought into the cause than of a group of Seo Org Scientologists.
Much like downfall after the golden years of Scientology, things at Namaste have also changed as more information has been made available to the public.
The share price continues to bleed, growth is minimal, auditors are fleeing, dilution’s increasing and lawsuits are starting. The really hot girl who you thought was going to revolutionize the cannabis space through machine learning/AI/IoT/ecom and every other tech buzzword turned out to be a basket case beneath the skin.
Now Sean doesn’t have the responsibilities of a CEO dealing with a dumpster fire. He still has the benefit of being on the board and dumping his shares when necessary and profiting in the process without the public knowing. Sean has turned Namaste from his longterm girlfriend into friend with benefits, where he can come and go as he pleases. Not a bad spot to be in. Let new CEO Meni Morim deal all of the bullshit coming down the pike in the near future, like:
- multiple auditors leaving
- filings being late
- potential de-listing from the TSX
- margins/profitability being eaten away
- lawsuits in Brazil
- insane stock dilution
- 1% year over year growth
- a fragile business model with new competition
- a Namaste MD app rebuild
- a stock continuing to bleed
In a recent interview with The Sydney Herald Sean Dollinger compared himself to both Elon Musk and Jeff Bezos. It wasn’t so much a comparison as a statement that he would one day supersede them. The only real thing Dollinger and Musk have in common is a lack of understanding of PR around a public company.
In an interview with Midas Letter days after Dollinger was terminated he stated that the reason behind it was the two board members Branden Spikes and Laurens Feenstra ultimately making the decision. Dollinger stated he had never met either of them before. Branden Spikes is originally from Space-X. So it looks like a guy from Space-X essentially halted Dollinger’s dream of becoming Elon Musk.
Namaste is NOT about personal agendas, I repeat, NOT! No way, no how, you’d better believe it!…Here’s a stock photo of a sapling
Despite the company’s actions, its brand continues to be all about the small-time retail investor, transparency and honesty, whether at a investor or employee level. The company goes out of its way to announce its virtues, only to be deleted (the entire catalogue of Namaste 420 livestreams) once the glove doesn’t fit. Namaste has completely re-done its website three or four times in the past year.
This most recent edition is our personal favourite, and within a few words sums up the company entirely. Have you ever seen a negative formed hook-line for something outside of a cheap product from China? Telling someone you are not something without provocation is one of the quickest ways to in fact display that you are that very thing.
If you go up to a random person on the street and tell them: “Hey, just so you know, I am not a serial killer” or, “hey, just so you know, my house burnt down recently and I didn’t do it or get any insurance money from the whole thing.”
What are they going to think?
What would you think?
Someone very wise once told me, always remove the ‘not’ from a statement to get to the truth. Like, “I am not a racist but….”, or, “I’m not saying you are wrong, but…”