Reporters and researchers have raised multiple red flags regarding the on-going fraud at Namaste Technologies Inc. We are going to take it a step further.
Namaste telling shareholders and investors that they have been accepted to the NASDAQ is only a piece of the pie.
Let’s dive into the fine details and explain to shareholders and regulators what exactly is going on.
On September 27, 2018, Lifted Innovations Inc., filed a Preliminary Long Form Prospectus.
Looking at the prospectus we can see that Lifted Innovations was incorporated on February 27, 2018, and on March 16, 2018, the company acquired a collection of domain names, trademarks, and customer lists and related assets from ESC Hughes Holdings Ltd. (now BKN Calla Investments Limited)
Who runs Lifted Innovations? The CEO & President of Lifted is Brandon Ward who from April 2015 — May 2018 was the General Manager of Herbalizer.
Herbalizer is owned by Namaste Technologies, Inc.
Who are some of the directors? We pay close attention to the directors of Lifted who are also shareholders of Namaste Technologies (and close friends of Sean Dollinger).
Gary Shnier and Alan Ritter are both Namaste Technologies, Inc., shareholders and now directors of Lifted Innovations, Inc.
They are also close friends of Sean Dollinger.
Who is the largest shareholder of Lifted?
The LARGEST shareholder of Lifted Innovations, Inc., is ESC Hughes Holdings Ltd. (now BKN Calla Investments Limited) AKA David Hughes.. Namaste Technologies Chief Marketing Officer.
On October 4, 2018, an article was released providing insight into the undisclosed related party transaction between Namaste Technologies (Dollinger Enterprises US) and ESC Hughes Holdings Limited.
“with our LP sales license knocking on our doorstep, Namaste management has decided that it would be best for our shareholders to divest the company of our US assets…With the US’s federal government stance on marijuana and the current federal legislation in the US, Namaste management believes this is a strategic decision which will allow the company to explore new opportunities.” — Sean Dollinger
When Dollinger was asked about the transaction being arm's length he said absolutely.
Namaste responded to the report with the following.
The Company wishes to respond to these claims and inform shareholders that its NASDAQ application is progressing but has not yet been accepted or approved, that the Company’s sale of its US assets was not to a “related party” and was not a “related party transaction” as defined under applicable Canadian securities laws
If we go back to the same document that showed us Gary Shnier and Alan Ritter are shareholders and have a relationship with Namaste Technologies you will find this.
Orh Marketing Ltd., is a marketing company that is owned by David Hughes, Namaste Technologies Chief Marketing Officer.
Namaste went on the defensive by claiming “Mr. David Hughes is an employee of an entity that is an independent consultant to Namaste Technologies Inc. (“Namaste”) that provides marketing services to Namaste and is not an officer or director of Namaste or any of its subsidiaries or affiliates.”
They also went on to make the following statement about the Chief Technology Officer Chad Agate “Mr. Chad Agate is an independent consultant to Namaste Technologies Inc. (“Namaste”) that provides technology services to Namaste and is not an officer or director of Namaste or any of its subsidiaries or affiliates.”.
For now, all we can ask is — what kind of technology company lies about its CTO & CMO? They are officers of Namaste Technologies making day to day decisions and engaged in deal-making.
Dollinger will tell you this himself, watch the clip below starting at 29:53.
When Namaste announced it was divesting its US assets and selling them to an arm's length party out of Europe they disclosed what you see below.
What happened with Distribution Goods (distributiongoods.com)?
In a press release dated June 07, 2017 titled “Namaste Announces Record Monthly Sales of CAD$1.108M” the company stated
“The Company made good progress with its wholesale division Distribution Goods. Revenues in May increased with 8.9% to C$72,324 compared with the previous month. Distribution Goods was the fastest growing division after Australian Vaporizers, which reported a 15% increase in sales in May compared with April.”
This table shows you November 2017 revenues broken down by channel.
Distribution Goods $197,222.
The last time Namaste mentioned Distribution Goods was in a press release dated December 7, 2017, titled “Namaste Announces November Record Sales of C$2.2M”.
The only time Distribution Goods comes back into the light is when its exposed in the Lifted Innovations Inc., Preliminary Long Form Prospectus.
We are left with a few questions:
How was ESC Hughes Holdings Limited able to sell Distribution Goods to Lifted Innovations?
Why didn’t Namaste Technologies spin-out the US assets and give them to shareholders?
What is happening to all of the revenue generated by these assets?
What other assets have been stolen by company insiders?
When will regulators launch an investigation?
Part 2 coming.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.