Whether the distribution deal with HL was exclusive or not, and we assume that the other two distribution deals have taken its place, this may not necessarily be a breach of ASX rule 3.1. MGC could argue that dropping an exclusive deal with one distributor in favour of two distributors does not materially affect the value of the company in fact the board could argue that its likely to increase the company's value! That rule is reasonably subjective.
That's not to say of course that the new distribution arrangements will actually achieve that. As you say though we actually do not know if the relationship has broken down, or MGC has renegotiated the terms with HL. whichever way, given MGC made such a big deal over it when it was first announced, if it has broken down then shareholders should be informed..... and they wonder why the SP keeps declining
