CGB 7.14% 0.8¢ cann global limited

Ann: Q&A on the merger of QBL MCL and Medcan, page-541

  1. 9,288 Posts.
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    Personally i think its good to see, that is a company rep on the HC site. Dowrampers (As they are called) are all over the place on HC, Uprampers too (As they are called). Its just part of a site like this i think, you may get a few more questions just because you are here i suppose but surely no biggy. What your doing is kind of new and if and when real profits come along and/or better market sentiment the SP will look after itself just like any other company.

    The main thing i don't like with this presented deal is its not pro rata or whatever the wording is for SH as i see it through my eyes. I don't understand the reasoning behind giving 1.3 bill shares for 45% of MCL, QBL owns 55% of MCL and has done now for a while. If one was to be generous by saying QBL SH first got 55% of MCL for 50 mil shares plus another 50 mil for benchmarks then that makes 100 mil shares and to make it easy lets say for half of MCL,, also being generous lets say the QBL SP was 1c at the time. That makes to date say at 4c or even 5c a share QBL's 55% of MCL has basically increased in value by 5 times MAX so if the deal was fair to all SH and what i call pro rata then maybe 500 mil shares MAX should be issued to remaining SH of MCL for its 45% or remaining aprrox half. That way everyone with a MCL stake has made the same money and what i would presume the way it should be, less dilution would also see an 8c CR more realistic wouldn't it.
    Can you please ask or explain why the 45% of MCL that QBL dosen't own warrants a larger increase in worth to the QBL 55%?.... Does AK and Co want a bigger chunck to sign over all of MCL? Is this really right? Its like they want to change the goal posts from when the original deal was signed but can't go back in time so are wanting more now probably due to unforseen circumstances i guess. If the true potential of the MM, Hemp and other products in the focused market come to fruition over time surely 400-500 mil shares will set up the remaining MCL holders well enough? and will also have less dilution thus producing more multiples for them over time compared to a bigger 1.3 bil issue.
    Otherwise i still think there is lots of potential here but will have to wait until after the deal and CR's are finalized to see what and how the market values it, its a new industry so hard for me to judge.
    Anyway thats my main concern, please answer as best you can.
 
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