It is interesting that they make this announcement on UK time. Who could have seen that coming.
Maybe someone reading my thoughts and seeing that it will have more legs in the UK and then the Oz markets might push up after. It might just be me, but the announcement seems a little too early UK time to have signed this beforehand and therefore would have already been known prior to our markets closing (or at close). Hopefully ASIC doesn't also pick up on this and question when it was known lol... dumb mistake by management.
The CannEpil drug is fairly well accepted and used within the medical arena at present. I haven't followed the other drug at all. I would suggest this new agreement should contribute to the revenues of the company as long as there are provisions for minimum numbers etc (although that hasn't worked for this management in the past).
As I mentioned in many prior posts about this company, their management is hopeless at making profits on items that should be making money. Their products appear to be good - I do not dispute this but I am not sure where their margins are actually going. When you sign a deal, you should calculate your cost of goods and then work a decent margin on top of that.. eg 40% at least. Why their business model is not turning a profit is solely down to the management.
I would like to see someone take a controlling interest and remove the existing board and management and then we are likely to realise some profits.
Maybe the directors want to run this into the ground, buy / obtain shares cheap, then do a management buyout. It is the only reason I can see why they are total incompetent f**kwits.
MXC Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
