Neil
The complete email has been released previously on hotcoper but I will place it here so all questions and answers can be seen.
I would be happy to give you my details so as you can confirm the email. You might like to take note of the date and have been waiting since then
This is a copy of email communication I had with Sholom.
I have been waiting on the things he mentioned but to no avail.
I am out with a small gain till I see a true direction and transparency and open accountability of the deal.
G
ood luck to all holders
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On Mon, 25 Jun. 2018, 5:28 pm ………………………….. wrote:
Dear Sholom,
Whilst I like the deals the company is carrying out I do have a number of questions as the ASX release leaves a lot of questions I feel need to be answered. I am only a small holder of shares but am looking at increasing my investment in QBL.
I do not feel that there is a share dilution as many are saying as I believe there is large gains by the announcement
Agreed completely
.
I am not knocking the purchases as I do understand the corner you would have been put into with the ASX and I think you and most serious investors would have seen this coming as the hemp and medical cannabis was growing so quickly and pushing the bauxite down the column as being more of a minor part of the new QBL.
Do you have a medium to longer term plan to bring all branches into profitability and could you place this onto a flow chart .
I have requested from our media guys to look into preparing something like this
.
Have both deals with MCL and Medcan been valued by a qualified or experienced valuer and if so can you release the valuation papers or at least state who carried out the independent valuations
The simplest and most transparent valuation is the value given by the market itself on QBL as a result of owning 55% of MCL. That is the asset besides the cash that the market was valuing in QBL. Keep in mind we didn't pay cash for the assets, we are paying shares. So the simple and only method of valuation was to issue 45% of the shares of QBL minus taking into account the value of our cash and bauxite projects, there is no other method of valuing. With regards to Medcan, other companies on the ASX are valued in excess of 2 or 300 million dollars almost purely on the back of having a license to cultivate medicinal cannabis. We are also securing the services of the Medcan management. The overall deal is a massive value add to QBL and now makes us the complete cannabis company with two fully vertically integrated on nutritional and medicinal cannabis.
Can you tell me more about Craig Cochran and Gareth Ball as I can find very little about them.
Follow our pages over the coming days we will be releasing further information around Medcan. They are very well versed and respected in our industry, and were of the first to secure an ODC license for cultivation which we know how hard that is to achieve, and they have secured a DA for a full cultivation and manufacturing facility. The results and accomplishments speak for themselves and we are proud to have them as part of the team.
As we are to be paying them 2.25 million shares in quarterly payments over 2 years. Do these people have any qualifications that are going to benefit QBL that warrant these payments.
See above
.
Are these 2.25 million shares being paid quarterly over 2 years also to be escrowed or free to trade.
As this will be in lieu of a full time executive salary, we will be applying to the ASX for a waiver for these shares not to be subjected to escrow
.
Can you tell me the history these persons have with MCL prior to the deal as I note on the Medcan Facebook page shows many photos but all photos are shown as being supplied by both Medcan and MCL together, so there must be some history.
There was no formal professional relationship prior to the deal being entered into
.
I note the licenses that we have gained with the purchase of Medcan Australia but can you tell me if we have a manufacturing license.
Medcan currently has a cultivation and production license which enables the cultivation and production of medicinal cannabis. We will be making a separate ASX public release around the status of the licenses and what they mean, including manufacturing licenses and their status.
My history is in refrigeration and climate control maintaining controlled environments which had to be running in very tight ranges as the research station I was involved in was malaria infected mosquitoes and monkeys where both Temp and humidity was used to control breeding as well as for safety measures in case of escape.
I have a good understanding of the costs involved in these controlled systems and would like to know how the indicative costing of 2.6 million was obtained for the completion of the research building and cultivation area
We have been in extensive contact with the largest international players who operate and fit out these facilities, and have costed what we need in our facility on that basis.
In regards to the DA approval for the Medcan development
- If construction has started what stage is it up to
Perhaps we will prepare a further ASX release further detailing what we are comfortable and allowed to release to the public around the details of the facility.
- Can you tell me the total size of the landholding
- Can you tell me the total size of the cultivation area
- Total size of research building
Can you give some sort of indication as to the yield of the recent harvest and a guide as to the next planting?
These are details only appropriate to be communicated in an ASX release, and usually in the quarterly report. Perhaps we will consider releasing an earlier report to address this issue
.
Now the hard question. With the history of QBL and the exceptionally long period to try and bring in the Bauxite to fruition how am I to know you and the company are not going to slide into a very slow growth like the bauxite has over many years to the stage that the bauxite can’t even be valued.
The bauxite we were relying on approvals from the government which were onerous to achieve, besides the future general uncertainty of mining and the uncertainty of future outcomes of exploration results along the way. On the cannabis, we now have basically all the approvals needed for our business both on the nutritional and medicinal side , we have made the strategic acquisitions both commercially and with personnel that we believe will make our business successful. Time will tell I guess if we do a good job with what we now have. I think though judging on what we have been able to achieve in the past year that this should give significant confidence to our shareholders that we know what we are doing.
Is it possible to give a full report concerning the bauxite and the china trip such as how many companies you are talking to and where you see the bauxite heading with QBL in both the short term and longer term.
Maybe we will expand on this a bit more in our upcoming quarterly, but with all negotiations, and particularly with the Chinese, it is quite sensitive to talk about things publicly before a deal has been concluded.
May I make a suggestion that you may consider a video information session where you go through the whole announcement section by section and explain each section with both the good and bad of each section as I feel that if it is all explained in this basic method you will see a dramatic change in attitudes and share price.
We have asked our media guys to look into this for us.
I know there would be hard questions that need answering but this I feel that shareholders want as it was a big announcement and every shareholder has concerns that need to be addressed. Or perhaps an open webinar where all shareholders can participate and have their questions answered to their satisfaction and so as all shareholders can ask and listen to replies.
I know this may seem many questions and only involves a small sections of the announcement I ask you provide me with answers to my questions.
I look forward to your reply and thank you in advance
Thank you for your interest and sharing in the confidence of the great potential our company now contains.
Regards,
