Namaste Technologies has fired its CEO and commenced legal action against him for damages and disgorgement following an internal investigation that concluded that the high-ranking executive had committed ‘breaches of fiduciary duty’ and found evidence of self-dealing, according to a report published by the Financial Post.
The investigation was prompted by a short seller report in October 2018, which alleged that Sean Dollinger had committed securities fraud. Following his unceremonious departure from Namaste, the Canadian e-commerce platform for CBD products has seen shares plunge 21 percent.
“The Board has initiated a formal strategic review process to consider all value-maximizing alternatives, which could include exploring a potential corporate transaction that may, but not necessarily, result in the sale of the Company,” the company said in a statement. “We are in the process of engaging an investment bank to advise a Special Committee of the Board overseeing the process.”
Meni Morim, formerly Chief Product Officer, has been appointed interim CEO, effective immediately while Darren Gill has been named Chief Strategy Officer.