Ann: THC Global Quarterly Update & Appendix 4C, page-60

I'm not sure while your banging on about growing our own - and getting on with it instantly. The global market for medicinal grade cannabis is in huge oversupply at the moment. Canadian cultivators went mad and every producer thought they would make a bundle, so companies grew exorbitant amounts. Said companies then experienced constant bottlenecks due to legislation and production capabilities falling short and raw product is pretty much as cheap as you can produce it, with no risk attached. Why would we borrow to start producing when we can just buy the raw product without risk or without borrowing to do it?

I'm happy to see Eden Farms come along within 2 years - and funded with profits - no borrowings. THC should keep that borrowing ability in check in case we have an opportunity to add value to the company through an acquisition or some sort of opportunity that may arise. There is going to be opportunities in the industry as there will be consolidation and some companies will not make it as they will not compete on quality or pricing.

I'm very bullish - but I am patient. Lets focus on increasing revenues where we can in the shorter term and build other less profitable parts of the business model as we can afford it without borrowings or dilution.