Ann: AGM 2018 Webinar Details, page-32

That was hard to listen to. Sound quality muffled, so could not really hear the answers.

For those that sent in questions how about posting them on line and see if we can get some consensus on what the answers were that were given. I'm reasonably happy that they tackled all questions.

Here are mine:

1. Varm Cosmo contract

 

• Did VC provide any reason why they made a decision not to perform on the contractual arrangements entered into with MGC derma?

• Were any performance shares issued to management related to the signing of the VC contract?

• If so will those shares issued now be cancelled?

• Can the board give some guidance regarding the maximum that could be expected to be paid by Varm Cosmo to MGC if a successful outcome is achieved from  legal action currently being undertaken?

 

1. MGC derma sale to Cannaglobal

 

• Can the board explain how MGC Derma was valued at C$12.5 million and how Mr Burnstein 49% was worth only C$1.25 million?  

• Originally the sale price of Derma represented 12.50% of the value of Cannaglobal, now it appears to be 10%. If that is correct then does the board believe that Cannaglobal has a capitalised value of C$125 million?

• Will  key management be receiving performance shares as a result of this transaction?

• Why has the board committed itself to paying Cannaglobal 5% of any future sale of MGC Pharma? Is the 5% payable if the sale is to Cannglobal?

 

The only one I could hear properly was that CG would receive a 5% fee if MXC was sold to a third party arranged by CG. (won't apply to a CG takeover bid)

Wrt maximum amount that MXC may expect from legal action, he referred that to the court decision. IMV its not clear how much they are going for in compensation. That at least would provide us with a maximum.

Did he say that they now have 8% of CG? Did he say that they got 4 times what Burnstein got for his 49%. It was more like 9 times? Did anyone hear the reasoning behind this.

Some good things happening and coming on stream but overall a pretty uninspiring presentation.