"My point being is it really required for all this work to be done whilst in suspension and why can they not be trading during some of this time?"
I believe the complication as to why we are not trading some of the time does not just lay with the company changing it's primary business activity from predominantly mining to mm/hemp.
The company flagged multiple aquisitions & large capital raise as part of the re-complaince process with large amounts of shares planned to be issued in the original prospectus.
The BioHealth proposal is a significant material change to the original prospectus needing full shareholder approval.
The two main difference to the original prospectus & new proposal,
1) Restructure of Transactions and Use of Funds In the interest of shareholders, the Board, in conjunction with Medcan Australia Pty Ltd (Medcan), have agreed to reallocate funds from the longer-term capital investments to investments with a shorter payback period. The reallocation of the use of funds will see significant funding spent directly on inventory and manufacturing and distributing medical cannabis and nutritional hemp products, instead of allocation towards the capital costs of the fit out of a production and GMP manufacturing facility. As a result, the Company will not be allocating any funds in the short term towards the Medcan facility fitout, therefore the Company will also not be issuing the shareholders of Medcan with the 250,000,000 shares to acquire Medcan.
2) As a result of the new agreement, the previously contemplated formal acquisition will not take place and the 250,000,000 shares previously allocated for the acquisition will not be issued. Under the Revised Medcan Agreement, and subject to the terms and regulations of its Cannabis ODC licences, Medcan will facilitate: • the import and export of products under CGB’s arrangements with third parties (including CannTab Therapeutics Ltd (CannTab)) and Pharmocann Ltd (Pharmocann)) as well as any future products that CGB may want to manufacture or distribute; • the manufacture of CGB’s products (using either its own facility or the facility of third parties); • The storage of and growing of CGB’s unique genetics and seed bank; and • use of a designated area within its facility for a lab for genetic development for CGB, and for manufacturing of oil extraction for CGB In consideration for these manufacturing, import/export and other services to be provided by Medcan, CGB will pay Medcan’s out of pocket expenses associated with the provision of these services and will in addition issue a total of 18 million CGB shares, through the quarterly issue of 2.25 million shares (in aggregate) to the management of Medcan over a 24-month period.
Regards, Dan
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