As a shareholder, I was happy to receive some news about the company finally presenting an overview of the current deal it is negotiating, but I do issue some caution about over-enthusiastic posts and price pumping, as I am also equally cautious about shareholders who continue to rubbish a stock that they have holdings in. That also doesn't make sense to me as wouldn't you want to exit at the highest price possible not the lowest price possible.
Looking at any positives in this, I see one at the moment. The deal mentioned, is in Thailand, which, from all press to date, could indicate that CGB is in a country, that over the next 3-5 years, may be a powerhouse for Cannabis sales. There is a good chance that Thailand may flood the market with cheap Cannabis over the coming years, forcing global prices down.
Some items to watch for us shareholders reading this announcement: 1) Exclusive dealing agreements carry their own inherent risks, as they are designed to ban or restrict competiton, which is why I would say that the ASX will be scrutinising this. 2) The current announcement is difficult to quantify 3) The company must release its Financials first before we get a proper announcement 4) Associaiton issues with current issuance of shares. 5) The company has explained the reason for its late financials which seems to have satisfied the ASX's requirements for disclosure.
Re opening, historicals with CGB indicate there will be a lot of movement at reopening. Currently there are no shares on the buy or sell side, so none of us can really confidently predict an opening price. The lead up, and first 30 minutes of trading will set the tone for the fixing of the price. CGB, if it was smart, would need to release a series of announcements over a few days if they are to maintain momentum, or a massive deal with a large contract value that the market could clearly see low COGS and early profits. That would allow current shareholders who wanted to exit to get out and new ones to come in. IMO only.
