Ann: Quarterly Report and Appendix 4C, page-29

I strongly agree with your analysis and I think this is firmly where management have their eyes set..From attending the AGM they have made it very clear that they are investing in the parts of the business where they are getting a good return and have established route to market. This is why you saw the agreement to expand both their growing capacity for CBD with the Kersey ag company and also moving into a larger facility to be able to scale production and manufacturing capacity.
The Hemp food business is in its early infancy and they have good traction in multiple markets which they are taking advantage of and bringing multiple new products to market both in the food space and also the skin care market which is higher margin.
with regard to the medical Cannabis market they are taking a very measured approach and have a modular scalable path to market. This means they will have a much lower initial investment for start up (budgeted $13m) and will only scale once they see the numbers working and the capacity being filled. This is a much lower risk than most of the listed cannabis companies out there..

Personally I believe hemp will have a much more sustainable and long term future and the CBD nutraceutical market will continue to grow globally. Just think off the opportunity as a Blackmores style product selling up into Asia and also an Australian grown protein selling into the Asian market (Think A2m in its infancy)