Ann: MGC Derma - CannaGlobal Transaction Update, page-365

Tronbirk. I noticed that, in your lunch conversation, that you brought up the VC deal. Wonder how deep that conversation went. Maybe a few questions if you are prepared to address them.

1) Was there any discussion on where the compensation claim is up to?

2) Given that the initial contract was signed and had a  value of $4mil ($1mil deposit that was never received), why is the claim so low and largely limited to the $500k breach sanction? Why is MXC NOT chasing VC for the total value of the contract given that there was a clear breach of a commercial undertaking.

3) Why did it take MXC 12 months to begin legal action? - and I am aware that MXC has stated it tried to give the contract as much time as possible to work.

4) What was the reason that VC were unable or unwilling to honour the contract? If they were not short of funds then what reason did they have for not delivering on their side of the bargain - or did MXC share some fault?

I would assume that the VC deal would have been high up on your priority list of questions so maybe you could give some insight.