Footmax, My interpretation is that mgc are between a rock and a hard place on the varmco deal. They had to disclose it to the ASX as it was a properly constituted legal agreement and now you have non performance with a client. What do you do? I think they have done what I would do and accept on face value varmco’s promise to pay in this half year. My understanding is that mgc are trying to force it earlier but my guess is they won’t commit to proceedings until end November.I held that view before having a one on one with Roby. He could spin me a line of BS, I have no way of validating that, all I know is that he is desperate to resolve it positively as fast as is possible without the deal going pear shaped.
I also gather that he wants to get some revenue from Cannepil so that if the varmco deal falls through it is compensated by cannepil. He believes that mgc cannepil can be produced a lot more cost effectively than the competition and at a lower price point.
MXC Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
