Hi
@Basileus, I think I owe you a couple of responses here.
"Have there been any responses to your concerns?"The answer to the above question is, No! I wasn't expecting one, to be frank, as it was a strongly worded letter where I expressed my disappointment about the lack of regular updates and/or Investor Presentations to keep shareholders apprised of the company deals. But, in fairness, I will say, that I was, to some extent, pleased to see the I.P. last Friday, followed up by a detailed webinar on Tuesday, filling in a lot of the gaps.
"there is $12+ million in the bank and shares are still the preferred currency in some transactions. How many billion on issue now? In short, it seems to be that it is easier to, 'take the cash and dilute the holders'."Bas, I don't think this dilution has been an easy one to explain to the market in "plain English speak" quite frankly. Personally, I hold both the company and swing traders equally responsible for the current dilution and the appalling share price, that we investor/shareholders now find ourselves staring down at. The signs of the growing dilution were always there though; causes not properly identified, I believe.
From my investigation, CGB (QBL), for most of its life, has had a large percentage of shares, over 50%+, held by M & D Retailers (General Public). With Retailers holding that many shares, in my experience, it can be a recipe for disaster for Penny Stocks when there is also a large pool of shares to trade.
I did discover when I dug deeper, that CGB has been subject to twenty-four (24) R & R FOMO P & D's since 2014 vs only eight (8 )steady day rises (ann released after opening) See Post # 51107230.
I have also gone back and seen that as these R & R P & D's build in number/frequency that Trade bulletin boards tend to go straight for the company/mgt jugular, as investors get jack of the volatile trading, particularly if this happens time after time after time. I have also noticed, particularly in CGB's case, that the market has grown tired and finds it hard to discuss/accept any other causes for the fall in share price, even if financials are turning around. Probably exacerbated when the company makes errors in ann's, does not provide regular updates or has been late/run to the wire getting financials out.
DILUTION OR CASH BURN?
In CGB's case, what do you think could be the better scenario?
1. Shareholders face down the fear of bankruptcy/liquidation from continual large cash burns drying up funds (3 companies gone the way of the dodo so far in last 12 months) or,
2. Shareholders, in the near term, work with a large dilution whilst the company maintains a cash preservation policy, holding $12.4 ML in the tank and remains debt free until the price from announced deals lifts enough that it invited potential big end of town money to buy out Retailers? (Hypothetical/with Facts just for this post)
For me, I think it is easier to sleep at night knowing that if I chose to, I can get out of this specca the next day if I want to, or continue, as I have been doing, to buy more shares, knowing that the company has money in the tank and will open the doors the next day, or even after a trading halt. I have also faced the other scenario where I woke up, opened my trading platform and found that one of my stocks had shut the doors and I had done my dough completely, all because I ignored my own policy of "don't trade a company with a cash burn/low bank acct" strategy. Disclaimer: As we know there are no absolute certainties with stocks.
MOVING FWD WITH THE DILUTION
I do think that CannTab, of all the deals CGB holds, has the best chance of getting this share price to rise and kicking some big goals for its shareholders, if the company, as it purports to have done, has the distribution network ready for when the product hits the Australian shores. Revenues also continue from the Food Division and Cann Global Asia.
That is my best answer at this time.
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