uploads///SQDC

Cannabis Company Namaste Caught in Yet Another Controversy

By

Aug. 18 2020, Updated 6:27 a.m. ET

Namaste

On October 9, Namaste, a licensed cannabis producer in Canada, was caught right in the middle of yet another controversy related to litigation against the company. The company specifically called out Citron Research for publishing false reports about litigation against Namaste. Namaste stated that only one securities action against the company has started and that “other assertions made by Citron are equally inaccurate and misleading.”

Article continues below advertisement

Other controversy

On September 24, Namaste was caught in another controversy that led Tilray to sever ties with the company. The controversy was related to an article published by Lapresse.ca that claimed that Namaste attempted to bypass the Quebec SQDC’s (Société québécoise du cannabis) strict cannabis sales and promotion guidelines to sell recreational cannabis to customers in Quebec.

SQDC agreements

As of the date of this writing, the government-controlled SQDC is slated to be the only one to sell recreational cannabis in the province of Quebec. SQDC has supply agreements with the above five companies (HMLSF) including Canopy Growth (CGC) (WEED), Tilray (TLRY), and Aphria (APHQF) to provide about 62,000 kilograms of cannabis annually to meet the provincial demand. So, an alleged breach to access this strictly controlled market would mean a severe consequence for the offender. Following this news, Tilray announced that it severed its ties with Namaste.

In an official response, Namaste said the article published by Lapresse.ca was misleading.

Yesterday, Tilray announced its progress in Latin America, which we’ll discuss in the next article.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.