I am gratified that you finally want to discuss matters pertaining to MXC. However, instead of engaging in a mind numbingly boring to and fro, how about we just do it in a single post. I’ll put down what I think the conversation would go to make easier.
F: May I call you Learn I feel that we have got to know each other pretty well over the last 12 months.
L: Yeah, sure Max.
F: Where shall we start – I know, how about the Canadian deal – seems pretty topical at the moment.
L : OK
F: Well, the Cannaglobal deal will really help MXC. We rid ourselves of a loss making division that has little hope of generation sufficient revenue streams over the next 5 years. We nail down an equity agreement on what should be a growing investment in the Canadian Cannabis industry – and we get in on the basement floor which will out investment there grow fairly rapidly. The agreement also gives us the $2mil loan to Derma back in 2 years with 5% annual interest added on. We also nail down a 5 year supply agreement win Cannaglobal – with a million buck upfront.
L: Yeah, I know all that.
F: Well, here is the true potential genius of the deal in my view. We get Cannaglobal to carry the cost of marketing and distributing products that we used to produce at a loss. They will access to the huge North American market so all we get is profits. They even have a volume part of the contract where the more they sell the more we benefit – we get extra equity in a growing company. Because MXC has a substantial holding – that could well double in value after Cannaglobal has a successful listing.
L: But what about the value of Cannaglobal Max?
F: Well Learn, that is a good question – what is the value of MXC?
L: Share price multiplied by the number of issued shares.
F: Yes Learn, so the value of Cannaglobal will be the same – but we won’t know that until it gets listed. Contract says it must be a minimum of $50mil – and I suspect it will be much more – If they issue 100 million shares at $1 then the value will be $100mil – and if the listing is successful, and the SP doubles (Cannabis stocks are really hot property over in Canada at the moment) then it becomes a $200mil company.
L: Be great if it did that.
F: Yes, it would. Want to talk about CannEpil?
L: Yes, I have some concerns about that.
F: Well, dry your eyes princess, all is well – TGA has just allowed it on the Authorised Prescriber scheme and that allows it to be prescribed to 100 patients - $1mil worth. We have a doctor on board with 3,000 patients and the number of people in Australia with this particular Epilepsy problem is over 70,000 – room for growth wouldn’t you say.
L: Yeah…maybe?
F: still not convinced? Well, once it gets known on the market then it will become wanted in Europe and North America – hey, we can tap into the Cannaglobal network. MXC has other products coming on stream – Insomnia, Dementia, cancer…once CannEpil gets noticed then companies will ask what else is available. Huge future potential.
L: Fair enough.
F: What about Europe – MXC has the Malta facility with 8 times the productive capacity it now has. Be up and running in maybe a year or a bit more. MXC already has distribution agreement – and is involved in getting the UK up and running with MM. With supplying Europe/Asia/North Africa and maybe North America, the people at the Malta facility will be as busy as a Parisian Courtesan on Bastille day. MXC will spend $5mil to build it and make more than $5mil every year once it is up.
L: Fantastic.
F: Yes, and MXC has GMP certification – almost a licence to print money. Not too many companies have that.
L: That is a real milestone for MXC.
F: Plus, we don’t know what any compensation claim against VC will deliver either – could be a few million in that.
L: Be good to get something back.
F: Plus research agreement at RMIT and Notre Dame – always good to have a higher profile as a genuine player in MM.
L: Sure is.
F: Guess you will be out there buying shares tomorrow and posting a buy recommendation.
L: Well, maybe a hold recommendation.
F: No, I get that. Nothing wrong with a bit of caution.
L: Yeah, that’s me – always cautious.
F: Just as an aside, do you have a bucket list?
L: No.
F: Ahh I do, I have 100 things I want to do before I die. I start at 1 and work my way up. 97 is attending a Wimbledon Tennis final. 4 is never getting an HC post addressed me from you. Any chance you could help me – you know, not sending me any more?
L: Sure, be happy to do that.
F: GREAT I’m going to Wimbledon.
