Ann: AusCann Appoints Nick Woolf as Chief Executive Officer, page-24

I followed EXL and re-entered this stock between 16c-19c and I am still worried. When I read what the chairman said about the market conditions of cannabis companies, a few things stand out clearly. AusCann is in a similar situation and AusCann actually talked about these things in the past too. There is no easy profit in growing cannabis because the world market is oversupplied. CBD oil only lasts for 3 years from the date of extraction. There are too many "no-name" products on the market. It's very hard to brand yourself as the superior product when there are so many competitors out there selling the same products. What AusCann is playing is hoping for a tight regulatory regime in Australia where they can brand their products as TGA approved. Frankly, the Australian market is small! There are players who already entered the selling phase using rebranded products. EXL also started to partner with a pharmacy company to sell their CBD products in early access scheme.

AusCann, to their credit, conserved cash but this means they also do virtually nothing and have a skeleton staff. They hold some important licenses. They hope other companies will come and help them develop products and sell ... This won't happen! Elixinol tried to make their own market and brand by burning cash and got into big trouble. It all comes down to the hard cannabis market where the demand is only theoretical and people can live without CBD oils.

While the risk of AC8 going down a lot from this level is low for the next few months but the Covid-19 dark cloud and the worse economic depression we will face do not help. It's better to move money to something else of real demand. I am just about to be able to get out. Just 1/2 a cent more or 1 more cent will make me happy.