RGI 0.00% 22.0¢ roto-gro international limited

Ann: Miracle Valley First Crops and Operational Update, page-20

  1. 4,093 Posts.
    lightbulb Created with Sketch. 6913
    Litigation - I very much doubt it, having said that, my below comments are purely my view, I haven't discussed this with RGI.

    In short, RQB don't have a leg to stand on, as I posted a while back, they actually negotiated a licensing fee (not insubstantial) about 2 years ago, as our Canadian patent was pending (1st filed 2013). They bought a few of our machines and copied them. Bear in mind RQB or Ravenquest only came into being in Jul 2015, our machines date back pre 2006.

    So their history in the Cannabis space is very limited, they're on record of respecting our US patent - so you'd expect them to respect our Canadian patent. Their CEO George Robinson is one of those characters full of spin & rhetoric based on ego. He has promoted their company on this Orbital Garden, conned a few JV partners into joining the wagon. It would be far better for him to do a quiet licensing fee with us, enabling him to keep up his spin & keep his JV partners. If we even mention litigation his clients would be gone - even basic DD would reveal he doesn't have a leg to stand on.

    So we are in the prime position, they'd know about our patent, they also know the previous licensing fee we agreed to, they also know that fee is about to go up. We have a noose around their neck, the more they expand using orbital gardens - the more they need to do a deal with us.

    My concern initially was they didn't have much money to pay our licensing fees (should we choose to go that way)
    Their last financial report July 31, they had $700k in the bank, luckily since them they have raised $659k and $2.1m
    As others have mentioned, their share price has crashed, maybe as a result of our patent, so they need to do a deal.
    Presently they are only manufacturing for themselves or their JV partners, they are not competing with us in outside sales.

    In short - they need to come to us and work out a deal, which will be more expensive than the original deal, and continue to get more expensive as time passes.



 
watchlist Created with Sketch. Add RGI (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.