Replies to post #7910 on Omni Health Inc (OMHE)

[HeedTheChief]

Not sure one can call it a complete failure
seeing they booked at least $110k from the
deal.

[lesgetrich]

Lesgetrich has already passed (unofficially of course) to this board, what he claims is Paul's own excuse for the failure of the Korean agreement (a Customs issue). This is one of the most import questions that Les either choose not to ask, or that Paul refused to discuss.

I did discuss this issue with Paul and have explained the situation several times. No one lied about anything. When mCig received that $350,000 order they didn't ask OmniCam about any customs issue. They assumed the customer had done their homework and knew about any such issues that would arise. Omni Cam had no way of knowing that customs would not accept the order as e-cigarettes, which could be imported legally into Korea. In fact, Korean customs sent the order back to mCig because the product didn't contain nicotine or tobacco products.

It's very likely mCig had a check in hand from OmniCam and had shipped product when they issued the PR saying that the money had already been received. They would have had to send the money back to OmniCam when the product was returned to their inventory. It's questionable whether mCig ever made any money off of the deal. OmniCam had to import components from mCig's Chinese supplier and assemble VitaStiks in Korea in order to meet the demand from their customers. I assume mCig just looked the other way thinking they would settle things up once the customs issues were resolved. This may be the case now that the US has reached a new trade agreement with asia.