Again, you're missing the point. First, look at the date of that...

Again, you're missing the point. First, look at the date of that MMJ Phytotech Annual Report; that was before the spin out of the operating assets was contemplated. Sure, the original intention was clearly to build the a collection of complementary international cannabis related assets, but as soon as it made more sense to list on the TSX, those exact intentions were ported with the management team into the operating entity that is HVST. It's quite clear when you realize the fact that the entire management team has moved over to the HVST entity and all the new hire's (COO and CTO today, with more to come) are also all at the HVST entity; there is no one left at MMJ but the board to be custodian to the tracking stock. Finally, regarding the "sub license" agreement if you read the paragraph I pasted from the HVST Offering Document carefully it clearly says that Phytotech Therapeutics is just "Satipharm's Medical Testing" entity, and that it exists to be "responsible for Satipharm's clinical development activities". It notes Satipharm's place as the license holder again in this sentence "...provide key data towards the commercial development of Satipharm's Gelpell ® Microgel CBD capsules...".

There seems to be some misunderstanding as to what the "drug" on trial is here. If your familiar with the pharmaceutical market you would know you cannot protect IP on CBD standalone (this is a natural substance, same as not being able to protect IP on Omega3 oil or Vitimin C); the uniqueness of the drug here is the delivery technology. And that delivery technology is being sub-licensed by another entity, and that entity is Satipharm.

To summarize, after Phytotech completes the clinical trial and shows efficacy (which I hope and anticipate it will), then any commercial revenues from the sale of the "drug" which in this case is the same as the "product" naturally has to flow through Satipharm, thus there is no excess value to Phytotech at this time.

The only additional value that could potentially arise is if MMJ uses the $8M on the balance sheet and completes an entirely new set of trials that does not use the GelPell technology, but they haven't stated any intention of doing that yet so I wouldn't bank on it.