RE: Diversified?2 Mar 2018 12:18
JP - I do not have any shares in LGC as I know nothing about the cannabis market. Yes, I have read quite a bit recently, but judging by the wild swings in the share price of listed cannabis companies, I wouldn't have a clue how to value them.
The AfriAg Global position is quite unique in that our share price has effectively been discounted since the HoH deal was announced, even though we are not directly involved in the transaction. I think people seem to forget that we are still an investment company and our 40% stake in AfriAg SA has been deemed to be worth less than it was if you use our share price as a guide.
From what little we have been told, both AfriAg Marketing and AfriAg SA are performing very well and are in a territory that is ripe for expansion from field to fork. We appear to have directors who have the knowledge and contacts in Africa so one would hope we can take advantage of the opportunity.
In theory, the House of Hemp deal should add considerable value to AfriAg SA, which in turn should add considerable value to AfriAg Global and we do not appear to be taking any financial risk.
As I said to Kenny the other day, it may be that we have to wait until May(year end results) to find out further information. If the situation has not been made a lot clearer by then, I think a lot of people here will be heading for the exit.
Despite the silence, I still remain confident of a successful outcome. I originally invested here to gain an investment in the agri logistics business and its off-shoots and nothing has really changed.