If nothing else having an investment in MXC is worth it just for the entertainment value reading through these posts!
Let me say that there are a number of issues that have always worried me but at the same time a number of areas they have made progress in that excite me. What is problematic is determining what is fact and conducive to future revenue growth and what is fanciful BS designed to enhance managements personal gains at the expense of shareholders.
There are many achievements we know as fact, so I am not about to list those, but we need to keep in mind that apart from very generous remuneration packages they award themselves, the performance shares that they also award themselves are worthless if they can't get the SP to grow.
Divvv10. You may have noted that I have also interviewed Roby in Ljubljana when I was there in July and I got virtually exactly the same info as what you got. I left that meeting still feeling a little uneasy about the companies true motivations to be fair, but I took everything discussed at face value. That does not mean though that it was true.
I have subsequently emailed Roby to seek further clarification on his remuneration package which does not reconcile very well with what he said he earned and what is reported in the annual accounts as cash payments, plus the following request for info below, sometime ago. This was not to get anymore info than what was supplied to the market but to provide the market with more info, I have had no reply to date. We are meant to be voting on this deal in the next couple of weeks for goodness sakes.
"I have looked at my calculationsagain. I assumed wrongly that MXC’s 51% of the Derma business was at the sameprice as Dr Burnsteins ie $1.3 mio for 51%. Having looked at this again itlooks like you sold the Derma business for a total of C$12.5 mio which meansthat Burnstein got C$1.25 mio for 49% and MXC got C$11.25 mio for 51%? How doesthat work?
A C$12.50 mio investment into anunknown company for 12.50% of its shares values that company at around 1.5times the value of MXC ie around C$100 mio.
I know you might be under somesort of confidentiality arrangement at the moment but I suggest you get a bitmore info out into the market fairly quickly about this investment intoCannaglobal, who they are and how the $100 mio value of the company has beenderived, because the market is obviously a bit sceptical about thistransaction. In addition to this can you confirm that the funds being lent toCannaglobal are not being used as part of the C$1.00 mio paid to MXC in thenext 10 days.
Also Roby, who is taking on thelegal suit against VC now. Is that Cannaglobal or does that remain with MGCpharma?"
I'm suspecting that learner will be correct and that the deal will be deferred in the ann tomorrow. I hope not.
