Emblem Corp EMMBF

RE:Reality check

[deminimis]

It's certainly possible. And if Emblem was racing to start the buildout for phase 2 and 3 in the next 6 months like most other LPs it would be a certainty. I think Emblem is going to have a much slower ramp up though which will mitigate their need to do further equity financings. They have $30 million in warrants that will probably be exercised in 2019 that I think will be the primary funding vehicle for phase 3 along with cash from operations which should be plentiful by then. And if that is not enough then debt financing will definietly be an option at that point. 

So the big question is whether they will be able to secure debt financing for phase 2 or if they will have to do another equity raise. I have a feeling that they aren't going to break ground on phase 2 until next spring/summer and should be able to secure enough debt financing at that point to cover phase 2 so I don't think they will need to do another equity raise but I certinaly would not gaurantee that.

Of course there is always the possibility of some other big oppotunity that we are not currently aware of that may require another equity raise to take advatage of but hopefully we will be of the opinon that it was worth it if that were to happen.