As you may know: Countries issue licences and have preferred suppliers or do it themselves. For instance I've heard that in Italy will have the military doing the growing on large bases and the military will be the exclusive supplier to the Italian government.
The journalist in this article is enquiring about the harvest from August where he says that MGC had no right or laws to be able to grow medicinal marijuana. When he asked MGC about this they wouldn't reply.
The big question from people in the know is what is MGC actually growing?
from the prospectus in the KPMG report on p 88/89 they are or were growing Fedora 17 ( http://mgcpharma.com.au/wp-content/uploads/2016/02/Prospectus-and-Supp.pdf ) and I'd also heard this from another source too.
FYI, Fedora 17 is a French seed which costs around 7-8 euro per kg. It's one of the higher CBD strains along with Futura 75 that fall under the .2% THC limit. Both typically give a yield of 2% CBD which a long way from the claimed figures MGC were saying they had with their exclusive strain of MM. Strains like ths can always be modified and certain growing conditions will be able to generat higher yields.
Where PANAX has come into play beautifully for MGC is that they can now develop MM because the big issue for me as a potential investor was whether they actually had a strain that was so high in CBD and below .2% CBD. I had my doubts and suspect they were just importing from Israel as they don't say anything to the contrary.
The conflicting information though essentially derives from the story to the shareholders about the high yielding exclusive strain and the application for growing to the Ministry of Health (where they applied for the licence for Fedora 17). Only one of these can be true and I always thought this mess would get them in trouble. Once again from the perspectiveof an investor it didn't sound good - What essentially was the value of industrial hemp growing in a paddock in Slovenia? Certainly not what the mkt cap of the company was at anytime in the past.
Has something changed?
I think there is a high probability that it has.
The fact that they are developing clean rooms and setting up processing equipment in Slovenia really appears to some people here that they are jumping the gun but maybe they are not. Maybe they have assurances somehow that they can set it all up and process it and make a great business out of it. It's just that right now they legally can't and this is baffling the reporter amongst others.
I have my doubts and optimism. From a political and economc point of view, Slovenia has had two pharmeceutical companies, LEK and Krka. LEK is no longer Slovenian but still plays a role in the economy. Krka is however an important business for the country and I always thought it played a big role in policy making. While it has always been a problem for THC to be grown, there was a pharmeceutical push to ban CBD despite it not having any hallucinogens simply because it is healing and can compete with drugs. This scared me for opportunities present and future. My thoughts were that if there were to be a push for medical marijuana in Slovenia it would have to clear the authorities and their friends and if so it would probably go to a company like Krka which is established and connected.
If MGC can pull off a license here then well played.
I for one am all fro the legalising of MM, I think it's a great product and always have wanted it.
As a person who has contacts already growing hemp in Slovenia, I would like to see some legalisation and opportunities for them and would also be happy if MGC could benefit from this.
Anyway, Slovenia is a small country with people who like their backs to be scratched and MGC has the financial capability to scratch backs.
Lets see how this game plays out but it is very very interesting.
I hope you shareholders appreciate this info and good luck to you all.
MXC Price at posting:
6.8¢ Sentiment: None Disclosure: Not Held
