No, definitely not the same thing at all - though a legitimate question given that history. I suspect that MXC learnt some bitter lessons from the VC fiasco.
1) We are not dealing with a shadowy group of people - Cannaglobal is a real company, we know some of the players and we will know a lot more in a couple of weeks time. They have stated what their aim is and they have snapped up 5 other Cannabis companies - MGC Derma will make up part of that initial set of assets.
2) there is not an outstanding "deposit" due. We will have something tangible in a 10% equity in Cannaglobal. We also have received C$500k to kick off the 5 year supply agreement. There has been at least one report on Cannaglobal that I have seen so we know what they are about even if we don't know everything about them yet.
3) What the deal is about is entirely different in nature. Been a lot of scare mongering going on in trying to link the two deals and claiming that MXC is dealing with a non entity. That is simply not the case.
4) What is missed in the mayhem, MXC is off-loading a loss making division that drains probably $2-3mil in resources every year and will never make enough revenue to support MXC as a company. We are getting revenue as part of the deal - plus an asset in owning 10% of Cannaglobal. MXC has already won something by doing that. It will give MXC time to focus on the main game - MM - and it means we have a player in the potentially very lucrative North American market who does all the work for MXC - the better they do it, the better it is for MXC.
Cannaglobal is in the process setting itself up - try setting up a corner shop and see what that takes and how much time - We don't know the capital value yet but if MXC holds 10% and this is an increase over the $9mil of the originally proposed deal, then $100mil would be around the baseline value.
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