CGB (ASX) Just my thoughts

Originally posted by falconsfanatic ↑

Really good post there to some it up,

I think there are a few issues that will have to be addressed

QBL stated in their last Q & A that they planted hundreds of hectares with the most technologically advanced and experienced farmers and only produced 80t of hemp seed, I hope they learn from the first trials on producing better crops as 80t is most likely not making any profit margins. A few more crop cycles will need to be completed to see if this is the actual norm or if they can produce anywhere near the 500ton they have calculated.

I would assume they know what minimum amount of money they would receive for their hemp seeds as they are selling it to red tractor for I assume a wholesale price. Therefore, you could try and calculate how many tonne you need to break even.

Another elephant in the room is the acquisition of the remaining 45% of MCL, if you look back over a year and abit ago when QBL initially bought into the 55% stake they only distributed 49mil shares. However, fast forward to the present and now distributing 1.195 billion shares to acquire the rest (as per their announcement they see these billion shares as 0.049cents). I would like to know how they can up with this number as the valuation is extremely high for MCL, if anyone can diverse on if they are making any net profits or if this is just based on potential?

I think if they can address these issues and shareholder should have a right to know, people will have a better understanding in their investment decisions

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This is true but you have to look at what the market is valuing MCL at now in the time that's past since last year.

At the time QBL acquired 55% of MCL for a fraction of the new proposal you could buy QBL shares for next to nothing too & now people are paying 4c.

Andrew is making 45% of the profits & is not going to give up his stake now for a pittance so when QBL are profitable he misses out.

The proposal is fair, nothing changes profit sharing wise for us shareholders by issuing these shares but it does bring the companies under one banner & assist with recompliance with the asx so the company can get on with the job.

Cheers.