Ann: RotoGro to Acquire 100% of Canadian Lawful Cannabis License, page-23

Whilst I agree in your analysis @Red Baron, Iam sure the license that has just been acquired and is due to expire at the end of the year may have something to do with the lack of credible interest on market.

Iam sure that both parties are probably of the opinion that the renewal is an administrative matter, however there is most certainly an element of risk in this transaction, which RGI is bearing 100% of until the license is renewed and under ownership of the company.

Why would the company not link a large portion of or make the acquisition conditional on the renewal of the license?

Why introduce an element of risk into the business by way of large shareholder dilution + cash resources being expended at the shareholders expense?

Seems rather odd that they’ve committed to acquiring essentially a piece of paper for north of $10mil, that is worthless come Jan 1 and requiring the Canadian regulator approval to re-authorize...let’s hope this is resolved swiftly for all parties.

As much as I’d like to see it earlier, I dont think the domestic market is going to ‘re rate’ RGI and ascribe meaningful value for the MJ oppprtinity until this above is satisfied.

I’m more than happy to be proved wrong.