Good afternoon QBL’ ers,
After watching the response to the recent ANN from QBL and then seeing the share price climb to 0.072 only to then plummet to below 0.06 I felt that I needed to request clarification from QBL regarding some of the wording in the release. Social Media has also gone into a bit of a hysteria based on a range of factors which I wont personally comment on here.
I have received a reply from Sholom Feldman and he also relayed to me some concerns from Andrew Kavasilas.
To help you guys I have taken his responses and constructed questions to let s/h’s and posters understand each reply that carefully addresses all of my points. I sent this to both Sholom and Andrew for Sholom’s approval to post accurately relayed information. I have now received that reply.
I asked
DIRECT questions, I got
DIRECT replies. I have also marked in BOLD points in his comments that were important to me.
TRANSCRIPT / Q&A Style
Good morning Sholom,
The recent ANN was good to see but as you know what appeared to be a glitch with ASX getting ANNs to banks seemed, IMO, to dilute the impact to the market, and I felt that it lost some of its impact with the price initially rising to 0.072 only then have it fall to low 0.05’s.
There are some statements in the ANN that I would ask for clarification & more information on so that I can understand the importance of this release and where QBL/MCL are heading with all of this this for the future.
QUESTIONS
- ME: Can you clarify the nature of the L.O.I.?
SHOLOM: Regarding the LOI, as we stated in the announcement, it is subject to formal documentation and as soon as that is finalised, which we are working on this over the coming period, we will then be at liberty to disclose all the information and identities etc. Our lawyers are handling this for us and we are following all procedures necessary to complete the next step in formally completing the deals.
In the interest of our continuous disclosure obligations we disclosed as much as we felt was necessary with regards to the LOI to keep the market informed of developments.
2. ME: Your October ANN mentioned about future developments being announced with Ican and EndoCRO in Israel.
Your ANN, this week, which indicated important discussions with Israelis and Americans, seemed to miss important
information on who was involved. Further down you indicated that “this research will be done in parallel with the
research currently being undertaken by Ican on behalf of MCL.” Can you please elaborate?
SHOLOM: As can be understood, we are in sensitive commercial discussions with a few parties and due to legal requirements, we cannot yet disclose identities.
As stated in the announcement, this group, who will be identified in the announcements upon completion of the formal documentation, is separate to the work that iCan and EndoCRO are doing for us.
3. ME: I have mentioned in the QBL forum, the possibility of comments from hot copper affecting the current sentiment and confidence in trading of QBL stock and its obvious fall and re-rate.
Do you have any comments?
SHOLOM: In general, we have been
very disappointed at some of the commentary on hot copper and particularly how quickly some shareholders are prepared to believe negativity over reality and I would like to address some of the comments and questions we have been hearing. In my discussions with Andrew he has also been very concerned about inaccurate assumptions and the mass hysteria that has been on the forum. Both Andrew and I are being swamped with emails and phone calls from shareholders concerned about what they are reading on hot copper.
- ME: QBL has released a lot of good ANN’s this year. Where does QBL stand in this present Hemp and Cannabis market? Can you also address the apparent hype around this?
SHOLOM: We have been working very hard over the past few months to create what we believe is the
leading company in the hemp and cannabis industry in Australia.
I don't think it should be necessary for us to repeat our announcements every day.
We believe in every word that we publicise, and
we currently are the largest Australian hemp seed food company.
We now also control the largest hemp processors in Australia,
That is not hype, that is reality. We are simply currently the biggest.
As it is a new business we cannot give projected revenues.
No other company controls the industry from seed to consumer like we do.
That is not hype, that is reality.
Is the whole cannabis industry hype? The answer is an emphatic no.
Are some companies hype? Well only time will tell about that, but as far as ASX companies, ours is in my opinion by far the one with the
LEAST amount of hype and is valued at less than many of the others, and in my opinion with
so much more substance.
- ME: What is happening with the Medical Side and MCL?
SHOLOM: On the medical side,
Andrew has many years experience in this field, as is well known, and we have repeatedly publicised his credentials. He had published his research that he conducted on high THC cannabis together with the government back in 2001,
and is one of the unquestioned leaders in this industry in Australia.
How many other companies can claim their own unique varieties of cannabis for research of which we own many, that has been cultivated over 15 years? In addition,
there are no regulations stopping us from pursuing our research with overseas companies and entities as we are currently doing.
Overall,
we believe we are by far the most advanced cannabis company on the ASX with the most amount of substance and with huge potential for significant short term revenues. How many other companies can claim that?
If they have market caps of hundreds of millions, where should we be?
6.
ME: What expertise does the subsidiary company handling the processing and bottling of hemp seed oil have?
SHOLOM: HHC has been and still is the only dehuller of Australian grown hemp seed in Australia, modifying, upgrading and up scaling with their team operating for the past 6 years with four major upgrades over that period with now current state of the art facilities, and we have just invested to upgrade their output further to meet the anticipated demand. Can you find another in operation in Australia?
Our joint venture with Waltanna, creating the Waltanna Hemp Group is also of major significance. Waltanna's have the longest flax seed processing history in Australia. Look them up on the internet if you wish. They are very well experienced in the development of machinery and use state of the art oil expelling equipment which use minimal heat, no light or oxygen and nitrogen flushed through the process. So I am confident that leaves the 'hemp cake' in optimal condition for milling into flour, protein and sprinkles. Can you find another company in Australia with such credentials and experience in hemp seed hulling and oil extraction? I believe they're also very competitive in the white labelling and packaging arena, which is also great for Vitahemp.
- ME: Where are we heading with the BAUXITE?
SHOLOM: As far as our bauxite goes, it will now all depend on getting the right offtake partner as we said in our last announcement. 2018 should prove to be a very significant one for that project.
- ME: In dealing with this constant NOISE on Hot Copper do you stand by all of your recent ANN’s to market?
SHOLOM:
We stand by all the announcements we make, if people choose not to believe them, or if they deliberately try to downplay the significance of them, there is not much we can do about that, and there appears to be some people on Hot Copper who are intent on trying to destroy shareholder value by making defamatory statements such as "it is all hype" and "no credible announcements" when we have probably the most credible of all the cannabis companies out there, and our announcements have more credible real information in them than most other companies.
*What is not credible about being Australia's largest and most vertically integrated Australian grown hemp seed food producer?
*What is not credible about us having and owning our own cannabis seed bank?
*Controlling our own huge cannabis grow?
*Controlling the largest hemp hulling and processing company which services nearly all other Australian hemp companies?
We are now the centre of this industry! The share market and speculators do what they do, and we can't control that.
We can only repeat that everyone should reread our announcements and take what we say literally. Then compare it with the other cannabis companies and then make an informed decision on our potential, instead of an emotional one based on hot copper posters and a down day on the market.
We are confident that our company will in the course of time stand out amongst all the others, and be recognised as the leader in this industry in Australia.
As the business is developing rapidly, we will continue to have plenty of regular announcements to market for a long time to come.
We look forward to sharing good news with you on our continued developments.
Best regards,
Sholom
I felt it answered some important questions for me and was happy to post with QBL's knowledge and permission so as to not break any HC TOU rules.
GLTAH & DYOR on this post.
Cheers...59
