Namaste Technologies Inc. (N.V) has fired its chief executive officer following an internal investigation prompted by short seller allegations.
The Toronto-based cannabis e-commerce company cited “breaches of fiduciary duty” and “evidence of self dealing” related to the 2017 sale of its U.S. subsidiary among the reasons for CEO Sean Dollinger’s termination.
Namaste said it is commencing legal action against Dollinger for “damages and disgorgement.”
According to the company’s website, Dollinger “grew Namaste from a two-man operation into the largest e-commerce distributor of vaporizers and accessories world-wide.”
“The board has appointed Meni Morim as interim CEO effective immediately. Mr. Morim has served as Namaste’s Chief Product Officer and Director of Artificial Intelligence since May 2018,” the company said in a statement on Monday.
Namaste began an internal investigation in October after short-seller Citron Research accused the company of a number of fraud allegations.
Namaste also announced the launch of a strategic review process to “consider all value-maximizing alternatives, which could include a potential corporate transaction that may, but not necessarily, result in the sale of the company.”
Namaste said it does not intend to set a definite schedule to complete its evaluation, and said there are no assurances or guarantees the process will result in a transaction.