Ann: MRG to exit Colignan Farm Lease, page-2

Well I guess now we know .... we are looking at over 50% dilution.

Hard to know exactly what to make of it until we see all of the details but it seems that we are going to look more like a branded supplier of organic products and less like a vertically integrated organic business .... the 3 year off take agreement buys the company time (enough time ?) to make that transition.

In the short term the cash flow savings should be significant .... @ $ 2.5 to $ 3 million per annum in fixed costs .... add to that the variable costs they would incur which in the coming year are likely to be pretty significant .... obviously that comes at the cost of potentially making a profit on the crop. However with a bit more growth in the branded business I think it pulls cash flow break even on a full year basis forward to 2021. I am curious to know what of last years crop came from Colignan ? I suspect it was actually pretty limited given the maturity profile of the vines ? Jamie do you have a view on this ?

Big question is going to be what the balance sheet looks like at the end of this ... I guess when they know we will know.

Question for me is going to be if we are offered the chance to participate what to do ?