Fair call Crab. Perhaps CGB weighed up the risk of the Medcann...

Fair call Crab.

Perhaps CGB weighed up the risk of the Medcann fit-out against BioHealth project.

On one hand you have Medcann fit-out targeting an under developed market. Medcanns contract with Bonify would appear to be under threat with Bonify having their licenses suspended.This was potentially a very lucrative opportunity for CGB to generate it's first meaningful revenue.

On the other hand you have BioHealth. A reputable GMP/TGA approved pharmaceutical company with strong track record for manufacturing high quality products & pharmaceuticals. Their manufacturing capabilities in conjunction with Medcann/BHC licenses places CGB in a very strong position to begin manufacturing both Canntab & Pharmocann products amongst others. The company can be targeting international markets by mid year with BioHealth offering a strong presence in Asia to assist accelerating CGB footprint.

The company has a decision to make. It likely has $5,000,000 to either proceed with Medcann fit-out at the risk of Bonify deal falling through, this would leave the company extremely vulnerable given the limited opportunity that the grow market currently presents in it's infancy . Alternatively it invests the $5,000,000 in BioHealth manufacturing targeting more developed markets which have proven lucrative. The BioHealth deal also moves the company forward by years with its acceleration into manufacturing at minimal outlay & early exposure of Canntab/Pharmocann products to market.

When you look at the risks is it any wonder CGB have taken the chosen path?

If indeed the case perhaps Medcann accepted CGB's aversion to risk. Their announced partnership is testament to both parties eagerness to remain in business together. This also said Medcann clearly have their hearts set on fitting out their facility sooner than later, don't blame them.

I'm guessing if CGB had an extra $5,000,000 on hand the fit out would have proceeded but unfortunately raising further capital & increasing dilution is not an attractive proposition for CGB management.

I'll finish by reminding readers I am only speculating & the facts may be very different but it's a forum & speculating is what we often do.

Sorry @Neil1959 if my earlier post & tag was a tad emotive. I removed the post because in hindsight as much as I'd enjoy learning more around the new proposal & Medcann deal the post was perhaps a little unprofessional . That's what I get for trying to post from my phone whilst multitasking at work.

Thanks to yourself for efforts to address the forum & for what it's worth I still believe Sholom & team are doing a fantastic job.

Regards, Dan.