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22/06/18

15:06

Post #: 33887262
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Originally posted by Tomasp ↑

Hi @Neil1959

Could you please pose the following question to Management. I (and I know a lot others) would be very interested in the answer. Should this not get answered over the weekend, I would like to contact Sholom directly via telephone and will inform the market of the outcome.

"Hi Sholom,

My question is why do we need to purchase 100% of MCL or spin it off as an IPO - why not just keep status quo? We already own the controlling stake (55%) of MCL and so completely control its operations? We are also entitled to 55% of all MCL's profits and control how revenue is used (from our majority ownership). Why not just acquire Medican and keep everything else the same?

By acquiring 100% MCL with QBL shares, all the new shares go to the current owners of MCL anyway. Therefore, current holders won't see 100% of profits, but still the same 55% of profits only - as the original MCL owners will hold the other 45% anyway. And yes, it was mentioned these shares will be in 24 month escrow, but this is just kicking the can down the road - in 2 years they come into play and the dilution happens regardless.

By acquiring 100% MCL with QBL shares, existing QBL shareholders who currently own 55% of MCL and 100% bauxite resources are essentially giving away 45% of the Bauxite as well. So after the 'acquisition' existing QBL shareholders still only see 55% of the MCL profits but now also only see only 55% of the bauxite resource profits (as the other 45% of new shares are held by MCL owners).

Thinking logically, an IPO or the 100% acquisition of MCL are both bad results for existing shareholders - when compared to keeping status quo..."

Thank you,
Tom

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QBL Price at posting: 4.7¢ Sentiment: Buy Disclosure: Held
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Q for Neil, page-54

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