Ann: RotoGro to Acquire 100% of Canadian Lawful Cannabis License, page-26

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23/11/18

09:02

Post #: 36612579
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Originally posted by Red Baron ↑

The company was very prompt getting back to me, helps having Canada in a different time zone. Unfortunately when companies put out asx releases, lawyers get involved, dotting i's crossing t's causing a loss of plain English readability. I think their reply below clarifies the transaction so all can understand.
Here's their de-identified reply..

Hello xxxx,

Thanks for the below ...

In summary the market obviously has not understood the transaction ...

The acquisition is based around 4 milestones of which the second 10% revolves around the conversion / renewal of the license under the Cannabis Act ...

The third is the change of address and ownership which includes the approval of standard processing at the new facility for a further 30% ...

The fourth and final milestone to the value of 50% is the approval of Standard Cultivation at the new facility ...

The transaction could not be further de-risked from the point of view the Company has secured a license for 80% Stock and 20% Cash staged over four milestones to be fully operational and compliant as a cultivator ...

Are the readers aware that all licenses in Australia also ‘expire’ / renew annually ... this is not dissimilar to renewal of mining licenses or your drivers license ... it is the governments way to ensure your premise and security personnel are still compliant and in place ... it is also an avenue to generate annual fees for the government ... as with most of these legislative things you are either compliant or not ... if you are not compliant you are provided with a remedy and a time to remedy ... the government are not in the business of expiring / cancelling licenses ...

Thanks

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Thanks @Red Baron for having this clarified.

Maybe it would of been of assistance to the company to hold a relatively short investor briefing off the back of the license acquisition announcement. It would of saved any confusion, cleared up the issue price of the shares in the transaction and enabled them to further get the significant message across to the market.

Cheers

RGI Price at posting: 43.5¢ Sentiment: Buy Disclosure: Held
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Ann: RotoGro to Acquire 100% of Canadian Lawful Cannabis License, page-26

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