"Shareholders must have confidence that they are backing winners!"
I want to add a few comments to the above post and a follow-on from my post #51517591
As mentioned earlier in a post, Canntab is now all that I am interested in, so, as I have not seen much detailed information posted so far, or support media from CGB, I thought I would post a few thoughts on how I see the CannTab deal unfolding with the new changes for us shareholders. I am taking my information from announcements and media reports. I will put into bullet point.
CANNTAB ORIGINAL DEAL - Jan 8 2018
1. The parties have signed a 50/50 joint venture (JV) agreement for the JV to exclusively manufacture, distribute and sell tablets containing Canntab’s proprietary technology and formulation in Australia, and to obtain the approval for such activities. VitaCann retains the right of first refusal for distribution of the product throughout Asia.
2. VitaCann will be responsible for the first USD$1,000,000 of the JV’s expenditure in Australia, following which expenses will be split 50/50 between the parties.
3. The Joint Venture will be operated under the name Canntab Australia.
4. The Joint Venture shall be owned equally by Canntab and Vitacann and each of them shall be entitled to one half of all income and profits earned by the Joint Venture.
5. All contracts relating to the products entered into by the parties shall be in the name of the Joint Venture.
6. All registrations in Australia (and/or Asia) related to the products shall be in the name of the Joint Venture.
7. Canntab grants to the Joint Venture the exclusive right to utilize the patents and the know-how to market, sell and distribute the products in Australia with a first right throughout Asia.
8. Medcan responsible for maunfacturing and distribution of CGB's products announced later
in Feb 2019
Basically, as I understand it, this deal revolved around CGB doing everything from Australia with 50/50 profit sharing from sales in Australia with the first rights to the Asian market.
a) Fully vertically integrated deal : CULTIVATION - HARVESTING - MANUFACTURING - GMP PRODUCTION - RETAIL
b) CGB pays the first $1,000,000 ($1ML) for Australian setup costs
c) Patents required for Australia
CHANGES TO ORIGINAL DEAL - 26 Oct 2020/10 Mar 2021
1. CGB have decided to import 6 SKU's of CannTab tablets rather than setting up a vertically integrated model to locally produce,
2. CGB are paying $418,000 for the first order,
3. The patent for Australia has now been approved,
4. CGB doesn't have to pay the first $1ML setup costs, as far as I can see,
5. The first customer will be CMOS, which is also a clinical trial with products being sold to participating patients,
6. I believe that the 50/50 profit after costs will probably still apply,
7. The Australian Import permits are approved,
8. Products made available through the prescriber SAS (Scheme B),
9. Medcan overseeing management of the importation and acting as managing agents to retail the products through their network of clients (as far as I know)
From what I can ascertain, the main changes relate to:
a) The cultivation/ manufacturing model dropped in favour of importation of a proven up finished GMP product,
b) The setup costs of $1ML waved in favour of placing a $418K first purchase order for 6 SKU's,
c) Medcan now managing the importation and distribution process
DELAYS OUT OF CANADA
What I do know, from what I have been reading in the Media reports, is that the delays are not just related to one company, i.e. CannTab, but are actually across the whole of Canada itself due to COVID, covering everything from flower cultivation, manufacturing through to the approval of export permits. So not much CGB can do there if they keep getting the same information from Canada that we are getting. "Imminent/any day now"
https://equity.guru/2021/01/21/cann...but-new-consumer-products-have-room-to-scale/
https://www.cannabiz.com.au/flower-...y6se8ySx6w6s6UFaBrxKk2jOcddYDKYPcqRiaRZ__M9Ac
I actually don't have a problem with this, but
I want to hear more about the progress/delays from CGB itself as well as some good marketing blurb on why CGB believe that our tablets are better than the other Cannabis products on the market.
Tell the story CGB, so that we your patient shareholders can have confidence in knowing that we are backing a winner.
Anyway, that is what I have found. People are welcome to toss in a few thoughts.
PART 2 tomorrow.
Cheers...59
