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G'day @BigDaniel,Could you tell me where you get the figure of...

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big finn

360 Posts.

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27/02/19

21:02

Post #: 37593501
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Originally posted by BigDaniel: ↑

I acknowledge that it was certainly a decision from left field that has suprised many, myself included.

I'd also like to acknowledge that very few companies if any will discuss the inner workings or conversations that take place behind closed doors with stakeholders. I don't expect CGB or Medcann to be any less proffessional.

After digesting the new proposal over the last few weeks i'll go ahead & make the following assumptions however I do not expect either CGB or Medcann to comment further regarding the previous arrangement, but only to focus on the new working relationship they have engineered to mutually benefit both parties.

I believe at the time CGB agreed to aquire Medcann they were made aware of Medcanns impending JV with Bonify, this deal is perhaps what convinced CGB management that investing $5,000,000 in the fit-out of Medcanns facility had the possibility of near term returns on investment.

I believe that whilst conducting the re-compliance process CGB has built on it's exsisting relationship with BioHealth with the possibilities that is the new proposal coming to light. It is now apparant to shareholders that the GMA/TGA approved BioHealth have infact been manufacturing some of the Vitahemp range for some time.

I then believe that the suspension of Bonify licenses in Canada & controversy that has ensued caused CGB managment to seriously question the investment of the $5,000,000 from the capital raise given the unlikely return on investment in the near term should the Bonify JV collapse.

This has potentially lead to CGB discussing alternative arrangements with Medcann to the original proposal. I believe CGB would have still pushed for the aquisition however it's possible Medcann did not wish to proceed without the $5,000,000 investment for their fit-out. Medcann are clearly passionette about their vision & it's completely understandable if this was in fact the case.

I assume that as we see it today in the announcement both CGB & Medcann have then proceeded to design a different working relationship, one that is still both mutually beneficial & built on respect however limits the risk to CGB shareholders.

There is no evidence to suggest that either parties have fallen out of favour with eachother, business can change in a minute & both CGB & Medcann appear to understand the need to change/adapt at very short notice.

I'll remind everyone that the above is purely hypothetical, only based on my speculation with all due respect to both CGB & Medcann that the above may be far from actual fact.

On a finishing note Tank..Yes the extended re-complaince is frustrating & shifting goal posts equally however it's important to leave emotions at the door..The risk entering these newly created markets is high..CGB has a great team behind them but shareholders need to be aware that we are not bullet proof..Critical decisions over the next 24 months will need to be made & probably few greater than this BioHealth proposal..We may not get another chance to raise $5,000,000..If Sholom say's the BioHealth deal is now the safest route to short term revenue than I'm behind him..CGB does not have the luxury of getting this wrong & Sholom stands to lose as much as any shareholder.

Best of luck Tank..Best of luck everyone because we are going to need it..I'll maintain that the future is very bright though & the latest proposal with BioHealth is very promising.

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G'day @BigDaniel,
Could you tell me where you get the figure of $5,000,000 for the Medcan facility Fit out please? I can only find a figure of $3,600,000.

"I believe at the time CGB agreed to aquire Medcann they were made aware of Medcanns impending JV with Bonify, this deal is perhaps what convinced CGB management that investing $5,000,000 in the fit-out of Medcanns facility had the possibility of near term returns on investment."

"21st December 2018Cover Note to Supplementary Prospectus and Relisting Update" https://hotcopper.com.au/threads/ann-cover-note-to-supplementary-prospectus-and-relisting-update.4587765/

Cheers
Finn

Last edited by big finn: 27/02/19

CGB Price at posting: 3.7¢ Sentiment: Sell Disclosure: Held
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