Emblem Corp EMMBF

Should Emblem Go Sungrown?

[deminimis]

I mused in a post the other day about Emblem building a greenhouse on their 80 acre property in addtion to their indoor grow. I am beginning to wonder if they should just skip the indoor grow altogether and go pure greenhouse.

The value in Emblem is in their pharma business and premium dried flower will have zero value in that market since it will all be extracts. I also think that Emblem has over-estimated the size of the dried flower market, sure it will be there in the beginning but I think it will decline in market share much quicker than they previously thought. They didn't think that edibles were going to happen for a long time and didn't think concentrates would ever happen but now it looks like both will be here within the first year of rec.

With provinces like Ontario announcing government only stores and stating that they want to keep a cap on prices to snuff out the black market I wonder if they will be able to command the premium price that they were thinking. 

I am just beignning question the long term ROI of an indoor grow because it is significantly more Capex and Opex than greenhouse. Perhaps they should just reserve their 2,000KG facility for premium product to be sold in either BC or Alberta if they allow a bit more of a free market and then focus the rest of their precious cash on "extraction grade" grow.Canopy's recent focus shift to greenhouse seems to me to be an admission that the economics of indoor just aren't there. There is a reason there are no indoor vegtable growers.