Response from CGB, page-5

Here is the second part of my Q & A to clarify some of the commentary placed on here over the weekend.

PART 2

3) Comment: The company seems to have troubles fulfilling promises such as the announcement to sow 500 tonne of seed at the end of 2017.

As mentioned in various announcements by Andrew, and the Board last year, as well as reported in the General Media, Australia went through a very tough year with extreme weather conditions in 2018; both wet (saturation/non-viable) and dry (nutrient deficient/non-viable). There were many failed crops across multi-seed broad-acre crop regions, not just with Hemp crops. It was also the first full year of growing Hemp Crops after the legislation was changed at the end of 2017.

Cann Global Limited is very fortunate to have some of the best farming families running our Hemp Farms here in Australia, across multiple states. Andrew Kavasilas, the Founder and Chief Technical Officer of Medical Cannabis Limited with 20 years experience Cannabis/Hemp research and genetics, assists as required in managing our farms. We also have partnered with the Edwards family (QLD/Tasmania) with over a decade of  multi grain farming/producing/wholesaling with the Hemp Hulling Company (production facility/upgraded 2018 - 2019). We also have access to a range of boutique farms contracted for specialised food products across Australia.

Considering the conditions many farmers experienced last year, Andrew achieved favourable results that helped our company to continue to produce Hemp Seed product during 2018, including some of new products just released to market for 2019, that are now being sold across Australia.... (mentioned in Quarterly)

Once becoming aware of the extreme climactic volatility Andrew arranged that the Hemp Seed available for sowing would be rationed and not be sewn all at once. This helped our company keep enough supply of seed for our other hemp products to be apportioned during the year until the growing conditions became favourable to sow larger crops. We saw those favourable conditions return towards the end of last year and continues, into this year (2019). Photos were shown in the last Quarterly, just released. The company was pleased to deliver an increase in the Revenues from our Foods Division. This was due mainly to Andrew's experience in cultivar genetics, advice from our agronomists, and Peter's experience in crop and stock seed management.

4) Question: Did any of the 500 Tonne seed crop end up destroyed because it had high THC levels?

NO! Definitely not! THC levels in our crops were not a factor in the lower yields last year. A detailed announcement was made by the company explaining the relevant factors, and THC levels was not the issue.

All our farms grow Hemp crops, under Licence, and all crops, are inspected by the State regulatory bodies to check on the levels of THC in the crops. All Hemp Seed Farmers are aware that if any unacceptable THC levels are found in any crops, a "destroy crop" notice will be issued and the whole crop must be destroyed irrespective of where the THC is found, even if it's isolated to a few plots. NO HEMP PLANTS will be harvested from that field. https://mikenahan.com.au/mediarelease/hemp-crops-primed-for-major-growth-in-wa/

Thanks,

Neil1959