Morning
@Fishinnick
I have no idea if CGB will re-list - there's nothing to say that it wont - as far as I can ascertain. Where it's placed on a HC screen has nothing to do with the re-listing process in my view.
"...
or are they just a bit out of their depth.....any other ideas?"
In my opinion - I think that might be the heart of the issue. I think that they may have been 'blindsided' by the Medcan deal.
In the 'Company Transformation' announcement of 20 June 2018 the acquisition of 100% of Medcan seemed to be a rather large and important part of their plans going forward. It notes this in that announcement;
"Medcan is theholder of an Office of Drug Control (“ODC”
Medical Cannabis Production License (Australian Cultivation &Production Licence) with an experienced management and production team with a contract to supply alreadyin place, which enables the MCL group to legally grow and cultivate high THC and CBD medicinal cannabisproducts in Australia to supply the new Australian and the burgeoning global markets."
(my bold)
Now ... one could easily have picked them up on their titles as being questionable.
https://wcsecure.weblink.com.au/pdf/QBL/01992266.pdf
For example - this is on the cover page, "
PART ONE - QBL ACQUIRES 100% OF MEDCAN AUSTRALIA PTY LTD".
To my mind that is a statement - it reads as though the acquisition of 100% of Medcan has been completed - when in fact it had not!
I would have worded that as,
PART ONE - QBL TO ACQUIRES 100% OF MEDCAN AUSTRALIA PTY LTD
The market subsequently knows that CGB have not acquired 100% of Medcan - nor their licences. What was the case, at that time, was that they had, "
entered into a legally binding heads ofagreement to acquire a 100% interest in Medcan Australia Pty Ltd (“Medcan” ("Medcan HOA")." There is a key difference between "acquires" and "enters into a HOA".
There's no need to enter into a HOA if you have acquired! Is that an error or obfuscation? That's for the reader to decide.
Note the first two pages.
https://wcsecure.weblink.com.au/pdf/QBL/01992266.pdf
I think they will re-list - there is nothing to suggest that they wont. However, I do not think it will be in the form that many here might think. I think that the commercial skills and knowledge required to bring this deal together - in its entirety - are substantial and key to its ultimate success.
Ultimately, it is the role of each shareholder to assess whether the requisite skills and knowledge are currently present in the management team.
Assessing the strengths, skills and industry knowledge of all public company and their respective Boards are a key investment metric - I think.
I think the abrupt change in the Medcan deal suggests and or signals substantial changes to the original plans.
Just my views.
