To the members of the HC Forum - QBL's Announcements*
We have been asked if we are going to put together an Investor Presentation. The company has requested that its media team prepare an Investor Presentation to be released to the Market. It will be visual presentation with easy to understand points. QBL fully understands, that shareholders want this, and they are in the midst of preparing such a document.
MAIN BUSINESS CORE OF QBL
It is important to understand that the main business core of QBL, as an ASX listed company, was mining and exploration, not Cannabis. MCL was a private subsidiary company that QBL had a 55% stake in.
With MCL's Andrew Kavasilas as the founder, and the new legislation around Hemp coming online in November 2017, Andrew and MCL soon became one of the major players that people/companies wanted to invest in, and also the main reason so many opportunities came our way in such a short time.
QBL FOLLOWING STRICT GUIDELINES
QBL were following strict ASX guidelines lines in how it could develop prior to doing what it is doing now with a full recompliance. QBL quickly developed into investors seeing QBL as having two core businesses. We are the only mining company that had a Cannabis investment arm. No other miner had been allowed by the ASX to do this.
Then November 2017 saw the Hemp wave hit the coastline.
THE BALANCE OF THE SCALES TIPPING
Most of the news, as you are aware, over the past 11 months out of QBL, has mainly been around the Cannabis, and QBL had to maintain tight control over the structure of the deals so we did not breach our obligations to the ASX. This led to the questions and uncertainty in the marketplace as to QBL's future role in the Cannabis industry and in MCL, questions that the Company could not clearly answer until a decision around the future of MCL and QBL would be made, whether MCL would be floated off independently in its own IPO or whether QBL would merge with MCL and do a re-compliance.
QBL started the Q & A's to try and help with the inquiry load as well as launching our SM campaign.
As more deals were being signed, it was met with more uncertainty by shareholders, along with growing market discomfort, even with revenues coming in the door.
The Board decided that for the short term, 2018, it would have to suffer the criticism, to ensure that it did not let the good opportunities pass it by, and be lost to other competitors who were waiting at the door. So the Board executed the deals and decided to eventually let the revenues and the process of time speak for their achievements.
DIFFICULTY WITH THE 21 JUNE ANNOUNCEMENT
Sholom and the team fully understood that the spotlight would be put on the company and we waited until the right opportunity presented itself to let the transformation process take place to clear up the uncertainties that surrounded the QBL/MCL relationship moving forward.
This happened in June with the Medcan deal. The ASX then could not ignore anymore that QBL was effectively being viewed by the market as a Cannabis company due to the huge value that was generated by the MCL investment over the past year.
The ASX then requested the company to make a decision on its future with MCL, either sell or float MCL off now, or merge 100% with MCL and do a re-compliance as a Cannabis company. The Board wanted to make sure that maximum shareholder value would be retained by QBL, and the Board felt that spinning off MCL into its own IPO would have seen most of the MCL current and future value lost to QBL shareholders should an independent float of MCL take place. As a result, the decision was made to merge QBL with MCL and do a re-compliance, which would see all the MCL value, current, and future, retained directly by QBL and its shareholders.
Unfortunately, we believe that a combination of the 6-week delay to put all this together, plus the eventual social media commentary from the delays affected both sentiment and market confidence. These were the two main criticisms that we received from all the emails and phone calls received by our office.
The Board believes that it has made the right decision with the merging of QBL and MCL and is confident that as the Company continues to develop and hit significant milestones, that the shareholders will share and support the vision that the Board has for the company and its future, and be increasingly confident in the direction the company is taking.
CONCLUSION
Let this visual speak for itself. These are the foundation blocks for QBL's future. The company has the deals in place, the management in place, the structure in place for what we believe will be a very good future. We will continue to inform the market as more opportunities present themselves.
(*Information in the body of this reply can be found in our June 21 announcement and previous ASX releases)
*Visual from June 21 announcement
