Ann: Preliminary Final Report, page-63

Aussie, I understand where you are coming from, but I want you to understand where I am coming from.

I contacted Sholom Feldman 2 weeks ago, and he permitted me to tell my side of the story when my business was contracted to deal with I.R. during that 2018/2019 period. Until now, I have not felt it necessary to say anything in detail on specific limited areas where I can add to what is already out on the market or in the public space.

I often reflect on that Long Suspension. I wonder what would have happened if shareholders had been a little more patient and had not requested an ASX investigation, delaying the relisting a further 3 to 4 months. CGB should have been allowed to relist in early May 2019, as they were initially approved to do after the BioHealth announcement.

What I have been approved to say, matches up with the Q & A put on here 16/03/22: I refer to Post #:60213386
  
QUESTION

In February/March 2019, from the announcements, it was noted that the ASX were investigating the operations and business activities of Cann Global. From posts on Social Media back at that time, it was mentioned that shareholders may have instigated this inquiry through ASIC or the ASX, thus delaying the relisting by a further 3 to 4 months. In addition, CGB was requested to add more Directors. Are you able to confirm this?

RESPONSE: SHOLOM FELDMAN

"Yes, I confirm that was the case, as I have indicated in the response to your previous question. Just the request for additional directors set the company back by months as each new director needed to go through police checks and other background checks until they were approved by the ASX to be a director of CGB."

QUESTION

Adding further to this question: If this investigation had not occurred, would the company have been on track to relist in May 2019?

RESPONSE: SHOLOM FELDMAN

"I am certain that we would have listed by then. In my view we should have even been listed well prior to that date had it not been for those delays."

QUESTION

I understand that you cannot reveal or discuss internal investigations conducted by governing bodies in any detail, so my question will be target-specific. Are you able to comment or confirm that all areas of the CGB business model, its Directors and business activities were looked at during the investigation, or, the second option; were the governing bodies very thorough in their investigation of CGB and its Directors?

RESPONSE: SHOLOM FELDMAN

"It took a very extensive and probing approval process with the ASX until we were approved to relist. In the view of our lawyers, the extent of the issues that ASX put us through was in their experience unprecedented, which resulted in the suspension dragging on for over a year. As above, there is no question in my mind that many of the issues of concern to the ASX that they wanted to be satisfied with, were as a direct result of some of our own shareholders contacting ASIC and ASX regarding our company, which we had the onus to satisfy them of all of those concerns raised, in our view many of them unnecessarily, which was a massive shame as it eroded serious value from our company, set us back by millions of dollars during the waiting period, we lost our first mover status in the market, competitors moved ahead of us in the interim, we lost market share, and overall lost the serious market momentum and were unable to trade during the entire year that the cannabis sector was hot thereby causing our shareholders to lose massive value on the market by being unable to trade during that period. We unfortunately were never really able to recover from those serious setbacks that we faced during that period."

CONCLUSION

With permission given by S.Feldman, I wish to add that during that time in February and March after the BioHealth announcement, I took many calls from very genuine and concerned shareholders who were worried about their holdings and if CGB was ever going to be relisted.

A handful of posters, I believe, 3 or 4, who had been stirred up by posts on HC, informed me that they were reporting the company to ASIC and the ASX due to the long delay. Management later informed me that the ASX, at the insistence of shareholders, had commenced internal investigations of the company's business activities and governance. The results of those investigations were announced on 15 May 2019, including an extra EGM to be called, further delaying the relisting to August 2019. As a result, CGB was required to seek extra loans to manage cash reserves approved by the ASX during a Transformation Suspension. I was informed that this delay setback the company's plans to expand its operations and ensure the business was viable when it eventually relisted. Loans noted in Financials.

See more  comments in Part 2