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.”
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.
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.