CGB (ASX) New laws light up medical marijuana stocks

Originally posted by malmanu ↑

Its like a herd into this sector , lucky if 1 in 10 of these companies ever makes a profit. Which one won't be known for years , plenty are going to get burnt , the US and Canada alone have hundreds of companies supplying everything possible in this sector medical cannabis, food and drink products , growing equipment , you name it they have it, they will flood the aussie market imo when the time is right.

QBL paid 49m QBL shares to the vendor for 55% of MCL and an additional 50 million performance shares will be issued to the vendor shareholders of MCL upon MCL obtaining a permit from the Australian Government to grow cannabis varieties for medical cannabis research leading to product development. So in effect will pay 99m qbl shares for 55% of MCL . That makes 100% of MCL worth $4.1m at 2.3c QBL share price, MCL is to have its own IPO , let's assume they raise $5m this then gives MCL a market value of $9.1m post IPO.

There are 1,255,138,066 QBL shares on issue plus 165,485,076 1.2c options which expire in july , so in effect 1.42B shares come july. Making QBL worth $32.7m at 2.3c , QBL shareholders will own the 55% of MCL (99m shares) prior to the ipo so QBL shareholders will possibly get 1 MCL share for every 14 QBL shares assuming there are 1.42B QBL listed shares at the time of the IPO. I assume the additional money they raise ( i assume around $5m) in the ipo will give QBL shareholders first preference.

Speaking of IPO just got a call from a broker of an upcoming ipo , he will email me the details, this sector is hot , unfortunately i see a lot of money being lost post the stampede.

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Agree with everything but if Australia was in Transpacific Partnership with USA (no longer in TPP via Trump' order) then yes things would have flooded in. Due to strict Border Control on Plants and Seeds of any kind... it's not a quick process. Laws would need to be change in to allow for such products to be imported. Aussie grown and produced products will still make coin long before Border Control laws are relaxed for hemp & cannabis based products entry...