Rough start for Cann Global's return to the ASX

Rough start for Cann Global's return to the ASX

The first few days have been shaky following medicinal cannabis group Cann Global's (ASX: CGB) long-awaited re-listing on the Australian Stock Exchange.

The company returned to the ASX with a share price of 0.03 per share on Friday 23 August. Since then, the price gradually slid downhill by a third to $0.023 at the close of trade on Monday afternoon.

Of course, this slide can be reasonably explained by the fact the company was removed from quotation for a whole year; there were plenty of shareholders in the entity, formerly known as Queensland Bauxite, who needed to get out on Friday.

But the share price continued to dive on Monday, which isn't the most inspiring re-start.

Ultimately, the time off the ASX was a necessary evil for Cann Global which spent the year realigning what used to be a bauxite mining business into one of Australia's leading medicinal cannabis researchers, producers and manufacturers.

This period of re-compliance is now over, allowing the company to strive for new horizons.

On Friday the group also released its June quarterly report, which detailed how the company has hit operating revenues of over $1 million during the restricted relisting period.

Business News Australia spoke with managing director Sholom Feldman about the last few days and the company's complicated FY19.

How have the last few days been for the company since it was reinstated? Do you think the market has re-received the group well?

When you're off the board for a year people want to get out. And I think the market was trying to factor that in on the Friday.

What sort of came out of the blue was the collapse from the US on Friday which basically left the market without that strong buying support platform that would have otherwise been there.

We haven't yet had time to settle. I am still extremely positive and confident with where we're heading.

We're extremely undervalued compared to the other companies in the market in this industry. I believe its still very early days from that perspective and I'm confident that things are going to pick up as we start putting runs on the board over the coming weeks.

What's been going on behind the scenes over the last year? What's involved in that relisting process which I can imagine would have been a strange time?

It was an extreme stress for everyone involved because of the nature of our business having so many details; it wasn't the just the one transaction change over every compliance that you would normally see on the ASX, we're talking about multiple countries, multiple deals all at once.

Being able to maintain that balance of managing a dynamic, ongoing business and at the same time being able to comply with the rules under compliance was an extreme high wire type balancing act that we have to manage.

Anytime there was any small differences in any paperwork that has to be complied with. It was a very tedious process. And because of that you can imagine there was a lot of nerves, a lot of anxiety, a lot of stress and a lot of pressure.

Notwithstanding that, we certainly believe it was all worth doing. We just needed to get back on the boards and be back in business and be able to show the market what we're doing and what we're involved in. As we continue to hit those milestones my strong belief is we're going to firmly establish ourselves as the real leader in this industry.

Over the last two years the market has become very competitive and really packed. How do you stand out in such a market?

On the medical side of things, we're involved with the top researches in the world that are streets apart from any of our peers. That will translate into serious results for the company and the market will see how we stand out.

On the medical products side of things, having exclusive access to the CannTab product, which is one that I believe is the future of medical cannabis, will set us aside again in this industry as it will be the product of choice.

That is something the market will see, not just the capital market, but the consumer market. We strongly believe the medical establishment will look at our product as the product of choice because it's a consumable product, not a product of oils or things like that, it is something that can be taken like any other pharmaceutical pill.

On the food and nutritional products side, we have a joint venture with one of the world's leading cannabis companies called Pharmocann in Israel. They have a unique product range that they've been working on for quite a number of years and as a result of having an exclusive over that range of products we believe will again set us apart from other competitors trying to enter the market with lesser known or lesser quality products.

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Business News Australia

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