Namaste Technologies stated it has reached “a mutually agreed upon settlement” with former chief government Sean Dollinger during which the firm’s co-founder will step down from all formal roles with the corporate, together with as a director.
Dollinger will stay with the Toronto-based marijuana e-commerce firm in an advisory position to offer transition help to the firm’s new management.
Weeks in the past Namaste introduced that it had terminated Dollinger as chief government, citing alleged breaches of fiduciary obligation and self-dealing involving the sale of Namaste’s U.S. subsidiary, Dollinger Enterprises US.
In connection with the findings of an inner investigation, the corporate stated on Feb. four it was “commencing legal action” towards Dollinger “for damages and disgorgement.”
However, a spokesperson for the corporate advised Marijuana Business Daily that no authorized motion by the corporate had truly taken place.
“The company never did launch any full-blown lawsuits against Mr. Dollinger,” the spokesperson stated. “Both events realized it will be useful to debate a settlement. As a outcome, that’s the place we ended up.
“The company and Sean Dollinger effectively have settled any differences outstanding at this time.”
As a part of the settlement, Dollinger has withdrawn his personal authorized software towards Namaste and agreed to vote in favor of the election of administration’s nominees to the board of administrators for 3 years.
More particular phrases of the settlement weren’t disclosed.
Namaste additionally stated it will enhance its company governance.
The firm stated the board has reconstituted the audit committee, which will probably be chaired by Laurens Feenstra and include Sefi Dollinger and board chair Branden Spikes. Sefi Dollinger is Sean’s uncle.
A nominating and governance committee headed by Kiranjit Sidhu was additionally established. Spikes and Feenstra may even sit on the committee.
Sean Dollinger acknowledged the settlement in his personal information launch.
“The last few weeks have been challenging for me personally and professionally,” he stated, “and the terms of the agreement will allow me to continue working at the company in a senior advisory role.”
Namaste’s shares are traded on the TSX Venture Exchange as N and on over-the-counter markets as NXTTF.