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Adzy1981

70 Posts.

03/05/17

13:38

Post #: 24440109
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Originally posted by Smokedog ↑

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

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Gday smoke dog, thanks for the reply. Slipped in for a 25% top up today. Think i will leave it a few days and see if we go any lower. If not im more than hqapy woth my risk reward for this puppy.
Always happy in the land of smiles!

CMY Price at posting: 1.6¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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