Saturday, August 22, 2020 2:42:37 PM
1.) mCig did not sign up to be a sponsor of FarmOn like the companies you mentioned. Those companies gave FarmOn a donation period. mCig and FarmOn signed a partnership agreement to do business together. One proof of that is that they formed a joint venture and the CEO of FarmOn became the CEO of the joint venture. Paul was following the business strategy that was predominant in California at the time were virtually all MJ companies were organized around non-profits. It allowed them to claim all the costs of growing as a cost of goods (i.e. inventory) since they would be purchasing the product (from the non profit) instead of growing it themselves (normal business expenses of MJ companies could not be claimed as a tax deduction).
2.) (I think you meant trial) We don't know that the crop failed. That was FarmOn's claim. However, they broke their contract and wouldn't let mCig reps on their property to verify what happened. mCig sued them but for all we know the crop could have been sold elsewhere (perhaps they thought they could get a better deal). In the meantime, judging by the number of licenses granted by the state and the fact that they were reporting, it's obvious that others were successfully growing hemp in the state.
3.) The pandemic was the last straw not the excuse. Shortly after the OBTX dividend was announced Alex Mardikian had set up partnerships with HaulTail and several other companies for digital advertising. Unfortunately, at about that time mCig's deal with FarmOn fell apart and their revenue expectations dried up. OBTX couldn't fund their partnership obligations since the SEC was dragging their feet in making them public and in the meantime, mCig couldn't offer any funding. Their partnership agreements dried up and OBTX was forced to wait for the SEC. They didn't get the OK to start trading until last April, in the middle of the pandemic. I don't think anyone would argue with the fact that the timing isn't optimal right now for kick starting a new company.
Les
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