Member Info for LGO-fan

It's simple: it costs money to market a product, whether you do that here in the UK or abroad. The revenues they can logically expect from sales in Europe will be far less than the costs required to do so.

You know for a fact they will do a raise soon. I am surprised this is even questioned. It's just a matter of when, not if.

I hope it for all Sh's but why would they: each £ they invest will generate a return for them. It will cost them they same investment to push a brand that generates £1million of sales as it does for a brand than generates £1k of sales. Where do you think they will invest?

*not invest

Each to their own pov. Healthy debate is good.

But I have personally listed brands with customers in the UK, across many categories of products, including beauty brands on Sephora.

Sephora likes niche premium brands: it widens their offering. They take little or no commercial risk. You list your product on their platform. If it sells great, if not no issue for them.

They will invest in it, given too small an opportunity, so again it all boils down to CG's ability to generate consumer demand.

Be careful guys: Yes, Sephora is a fantastic place to be.

However, getting a listing is pretty easy. Most brands will get that job done (quite surprised it took them

so long, tbh).

As to "the signed a massive contract ": says who? They

announced a listing; that means they are allowed to feature their brand on the Sephora platform. In no means does this tell you they are assured of a certain amount of sales. Forget that.

Getting sales going on Sephora is that really challenging part. In a way it is no different than trying to get sales going on their own website: you need to create demand and for that you need marketing muscle, and a good story. IMHO they don't have a good story and they certainly don't have the money to invest in marketing.

It's a very small step forward, but nothing more. Without demand generation: it will be pretty useless

Hi Dodge, CBD for ingestibles: yes, makes sense but very hard to differentiate given current regulatory environment: impossible in the UK. For skincare: very hard to cut through: there is so much competition here and you need a lot of marketing investment to be able to win and build a profitable business. CG does not have to marketing muscle to win here. Not in a million years (regardless of whether their product is good or not. It's secondary and btw, there are a lot better products out there is skincare).

If with all the work they have done they only generated £30k of sales.... no hope.

Hi Dodge,

I think the reality is that there simply is no sufficient demand for these type of products. Even if they are "good products" as people here believe, there are so many other and probably better alternatives out yhere. There is also nothing really proprietary about CG, and most likely nothing worth paying for.

Why would a company be interested in buying CG when consumers aren't interested? And the so-called IP isn't granted yet, and even if so....why would you buy CG? You would just go directly to the manufacturer or get it produced elsewhere (you can always get around most IP's).

Just my reflections.

who would have thought that this high bar could have ever been beaten?

hilarious! That makes 2 funny posts: one intended and one unintended. Regardless, a laugh is a laugh. Keep them coming, guys!

Windows, this has got to be the funniest paragraph on this otherwise sad BB!

"I class myself as an old fashioned type of guy, burping, farting, scratching etc. not a modern man who thinks he’s a girl, so rubbing this cream or that cream on my face does not mean a lot to me"

It had me in stitches.

This whole CG proposition is a joke. In big companies I have worked for, people get sacked for coming up with daft ideas like CG. Here, these clowns launched a business and separated a lot of good money from well meaning (but perhaps too gullible) investors. I hope they will recoup their money elsewhere, but it certainly won't be here.

Jbsok,

What does it matter if someone is a holder or not? We are debating the "merits" of CBX, not whether we hold shares or not. Would be a very brief debate! I always prefer to listen to non-holders as they tend to be more factual. They point out the dangers; very useful info.
Everyone can say that they "believe" it will all come good. Where is the art or intel in that?!
Remind me: what is your average again?

and the environment is only toughening up in the UK. Advertising restrictions have again tightened, where Meta and Google were potentially going to relax their advertising restrictions, they have only tightened them. Industry watcher told me also that the authorities are clamping down more on marketing claims, essentially making you can only talk about the ingredients but you can't make claims about the benefits to consumers.

As a result, the market is declining and many companies are in limbo, waiting it out and hoping to survive. Love Hemp went into administration and more to follow. This limbo-mode could last years and the vast majority of these companies, as we all very well know, are making a loss and strapped for cash. This can only go the way Windows predicted a long time ago. Not just CBX, but many others will follow end up the same way.

Love Hemp story here: https://www.thegrocer.co.uk/restructures-and-receiverships/struggling-cbd-brand-love-hemp-calls-in-administrators/676172.article. And this is a company that is actually selling its goods (unlike CBX), and has reasonably good distribution. Still they can't make it work

https://businesscann.com/love-hemp-becomes-first-cannabis-casualty-of-2023-as-it-calls-in-administrators-akandas-ceo-tej-virk-resigns/

I wonder how you will spin the latest, predictable, RNS, Amran?

O, dear ...

As a alternative viewpoint:

Money in bank: very little is left and they will need to
raise £13mn as mentioned in the RNS to fund the RTO
Sales growing : to a whopping £28k!
RTO to grow a bigger company: Can+28k is not that much bigger.
Cannabis sector been destroyed lately and maybe due for a bounce back due to countries opening legislation around cannabis: Hasn't happened yet. Also not in the UK. In fact regulations are tightening as recently seen in the US.
Amazing products: maybe those of Can, but they are all
generic as all companies can are only allowed to sell products that are on the FSA list; that means no
one has a differentiated proposition

It is a massive gamble, Dodge. Let's be honest: the facts are bleak; there is only hope (without foundations).

If you take a step back: most DTC businesses are loss making; most CBD businesses are loss making. CBX combined both. Why do people think this is going to "be all right"? Other than hope and believe, I mean. There are zero business facts on the table to back this up as an investment; it is a gamble (and not a very good one). That is fine is people like a gamble, but let's call it what it is.

2 scenarios for you:

1) The Sp has dropped from 20p to now 0.7p: objective posters have warned and keep warning, based on facts coming from the RNS's issued by CBX, about the dangers. Those posters have zero to gain in this scenario

2) The Sp has dropped from 20p to now 0.7p: a very emotional poster keeps ignoring all the facts, has no objective arguments, and keeps saying "all will be well" all the way from the IPO down to today's SP. Arguably that person has everything to gain by convincing people to buy (more) shares. Even if there are no business facts to back that up, unless you feel £28k of revenues is the mark of a good business. So his jolly poster ignores facts hoping people will part of their hard earned cash.

So here is the big question: Who is being honest here? And who should one listen to (if only a tad more)

what is your take on the equity raise that will be needed to fund the RTO. They tend to placed at a discount....so when you say there is no point in selling now...are you saying it is better to sell after the RTO, when the sp will most likely be a lot lower?