CMY (ASX) Updated company summary

Originally posted by Adzy1981 ↑

Gday smoke dog, how goes it. Mate i have a question
From release,29.03.2017
"Any material investment in medicinal cannabis sector to be done via Capital Cannabis
independent of Capital’s core minerals exploration activities"
How will it effect cmy,s share price if they have a ltd cannabis company ie capital cannabis?

From release 29.3.17
"Capital (or its subsidiaries) will retain the rights to negotiate an investment in BCC for a
period of 90 days following the execution of the settlement agreement."
About a third of the way through negotiation period so possibly until the 29.6.17 for new, no doubt something in the intrim.

Bloomberg,
"Capital Mining Limited announced that it has commenced an action in the District Court of Western Australia against Broken Coast Cannabis Limited. Under the terms of the written agreement between Capital and BCC, announced on 9 March 2015, Capital loaned CAD 500,000 to BCC to be used by BCC for operating costs, and capital expenditure in the ordinary course of BCC's business. Capital announced the termination of the agreement with BCC on 20 July 2015, and demanded repayment of the loan. BCC has failed to repay any part of the loan."
What happened to the other$250,000?if they gave us $250,000?

How good of a relationship can cmy have with bcc?
Im hopeful something goes off but im a little confused.

Expand

Hello Adzy I am very well thank you and I hope you are too.

Capital cannabis Ltd is a wholly owned subsidiary of CMY. Therefore anything done by CCL will benefit CMY and it's share price. The reason they announced it that way IMO is to ensure that the ASX sees that CMY is focused on mining exploration. If not, they could crack it as 'the companies gone in a different direction' and consider making CMY get shareholder approvals and even suspend them off the market. It's a smart move from CMY to seperate the two entities.

Also, it allows CMY to spin out the CCL entity. This would work as follows; CMY would retain a controlling stake in CCL. They would put the BCC investment in CCL and then raise money from others and IPO CCL ASAP. This means no more dilution for CMY shareholders and all the upside. In addition, CMY would most likely get preferred rights to participate in this IPO.

Hopefully that answers your question to the first part.

The other 250k was essentially written off in order to focus on the 90 day negotiation period with BCC. They are obviously very, very confident this will be the case