Whilst I share doubts whether AEB can succeed in making the most out of the changes to legislation, their deal with QBL through their sub MCL (soon to be 100% owned by QBL maybe? if passes shareholders and ASX relisting ) is contingent upon the extraction of oil from cannabis sativa ( probably hemp) .... and MCL has recently acquired( with Medcan) the licence to cultivate in Aus. Can either company make the most of these developments?? I don't know.. I am just speculating.( forgot to change in last post that I now hold AEB again)
What is referred to as medicinal marijuana does not have to contain the psychoactive THC .. In Australia cannabidiol (CBD) oil without any delta-9 THC such as the product produced by EXL ( Hemp oil) was imported and used in Australia medicinally prior to Nov. 2017 after which it became subject to regulatory changes and classified by the Australian Office of Drug Control as medical marijuana requiring script and distribution through the Special Access Scheme.
Hemp oil extracted from the whole plant or flowers is not hemp seed oil ... the first is medicinal and contains CBD.. the latter ,although having its own health benefits, is classified as food. When one became legal (Nov. 2017) in Aus.. the other became illegal.
The ODC does not allow mixed use for hemp crops. The same crop, the same plant due only to ODC regulation cannot be extracted for hemp oil(medicinal) after the seed is harvested for hemp seed oil(food). I was not and did not think I was insulting anyone when I pointed out the incorrect assertion that hemp had no association with medicinal marijuana.
MCL/QBL only have a licence to cultivate.. not manufacture.. AEB has the technology to manufacture but not the licence... There is synergy but still missing links... more CR.. more cash burn.. yes.. but will it all come together?? and where does AEB's decision to spin off and separately list their Cannabis division fit in... did the ASX step in as it did with QBL and require compliance with listing rules should it ever become the major focus of business?
As to that I remain clueless...
There have been valid points made about both QBL and AEB regarding cash burn and investor (our) money supporting lifestyle over business interests, however for me there is enough potential in cannabis to gamble again.. I only ever risk what can ultimately be lost.
AEB Price at posting:
2.0¢ Sentiment: None Disclosure: Held
