Thank you for your comment @pnh88 Your question is perfectly...

Thank you for your comment @pnh88

Your question is perfectly valid and this raises a whole bunch of other questions, for which I have no or meager answers.

For example, in the US, Varm Cosmo, Inc is registered in Delaware. Which suggests a holding company. Many US companies incorporate in Delaware for tax reasons. The company registered in California is also Varm Cosmo, Inc and states as its type of business "Cosmetic Wholesale", suggesting an operating company. According to their website, Varm Cosmo has two brands "Seint Nicola" and "Cavalabs". I couldn't find the slightest information about "Seint Nicola", not even on their website(s). Cavalabs seems to be a packaged product although hard to say if it's strictly wholesale, retail (Korea is a retail website), or a combination of both. "Cavalabs Derma" seems to be the name they will use to repackage the MXC products.

I can appreciate the difficulty start-ups encounter and the trial and error motions they go through. But this company is going about it in a really bad way.

For example, the Varm Cosmo website (varmcosmo.com) provides very little info on the Cavalabs products and when you want to view more info it routes you to the Cavalabs website (cavalabs.com) where you also get the same minimalist info. When you press "Shop Now" you get a "Coming Soon" screen. Their Korean website (cavalabs.co.kr) provides more information, but when you select a product and try to buy it you get an "ERR-OR-100001" message.

Most public-facing companies would start with a simple Facebook page. I can understand that Varm Cosmo, as a holding company, doesn't have one. But Cavalabs should and it does (https://www.facebook.com/cavalabs.official/) but again, nothing there to see, only 5 likes and 5 followers!! The US website provides no opportunity to "like" on Facebook (or any other social network). The Korean site does, but when you press the Facebook icon it returns you to the homepage! Sloppy to say the least.

Last but not least, depending on the browser protection you have, you could get that message accessing their Korean website: "The owner of www.cavalabs.co.kr has configured their website improperly. To protect your information from being stolen, Firefox has not connected to this website." Again, not good for business if legit.

We both agree that MXC management should have done a proper job vetting this company. Whether they have done it or not remains to be seen. I can imagine that the lure of millions in revenue for a startup like MXC could make you skip a few hurdles. Reading earlier posts, I suspect many on Hot Copper share that feeling. However, despite that uncertainty, to say the least, about Varm Cosmo, MXC shares are still heading north (15% today) because the majority of investors believe in the potential of that company.