Emblem Corp EMMBF

RE:RE:Anyone know if the greenhouse construction has commenced?

[deminimis]

Yeah, that is what I was getting at. This greenhouse thing always smelled fishy to me. The cost of the project never made any sense, the estimated cost is about 3x what it should be based on other comparable projects. The total lack of urgency of getting the thing built also is perplexing. The board approved this greenhouse plan in mid-October, almost 6 months later they haven’t even broken ground? Hydropothecary didn’t buy the land their 1M sq ft greenhouse is being built on until mid-Dec and the thing is supposed to be done by the end of this year (with a total project cost of $115M btw. That is about 7x the size of Emblem’s proposed facility at only about 2x the cost). The return on capital of Emblem’s proposed greenhouse is atrocious.

 

The 50-60M project cost does sound about right for a 150,000 Sq Ft manufacturing facility i.e. beverage bottling plant, edible manufacturing, etc. I wonder if that is actually what they plan on doing with that site. As you said, that would be more in keeping with the business plans communicated in the investor deck. I wonder if they do not plan on even carrying a dried flower product line for the CDN rec market. They have already stated that they have abandoned their original “premium” rec strategy that high grade flower would have been produced for and instead will be targeting the health and wellness category (which presumably wouldn’t include smokable products). I think the flower produced in the  Woodslee facility could be solely for the CDN and international medical market where they will get way better margins than in the rec market.  I think this would be a very smart business plan and would explain why they aren’t in a race to build out capacity as there will be limited non-flower products available on day 1.

 

They are on a hiring spree so they must have something big on the horizon that we don’t yet know about.