This is my summary on this company at present.
They have set-up a great trajectory for success, which is what raised the share price to what it was.
Just like any personal relationship, communication is key and if not fluid, will lead to its demise.
This company does not like disclosing bad information. No company does, but hiding the bleeding obvious is going to tick anyone off, especially investors! You would find that the share price wouldn't tank as hard if the company just reported the negative, with on-going installments reporting on what they are up to regarding the various divisions. A share price is strongly affected by 'hype' which is a qualitative value strongly affected by emotion and feeling.
Regarding the raise, I do believe the company is coming at it with the right intentions, however, at this stage with a dire share value, the directors need to step up and put their money where their mouths are. If they strongly believe in their venture, they need to be with us, the shareholders, for the risk. Anything less than that is just a manipulative cash grab.
I do not doubt the board are putting in a lot of work to get this going, what they are trying to create will be a behemoth in Aus and will take time.
However, this means they need to put in extra effort in communicating to shareholders the progress on each of the business fronts. A lack of communication on an open-ended project milestone trajectory is only going to lead to a dimished share price.
On the people asking to get rid of the board, this is an ill-advised idea. The 3 ventures that will possibly yield high returns are directly related to connections the Feldmans have with them.
Dr Meiri - Israel
Pharmocann - Israel
Canntab - Cultural affiliation
Voting in a new board would introduce an unpredictable outcome.
And regarding Pnina's resignation, you wont see that until the share price hits over a minimum of 8c. She wants a nice return just like anyone else. How long that takes is anyone's guess.
I've stated in previous posts regarding the bauxite situation, but in summary, they entered the market for it at the wrong time and it was a ticking time bomb to fail, hence why they picked up the MM/Hemp venture.
I do believe this company will suceed, they just need time and a better understanding of share-holder relations.
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