RE:RE:Letter to Shareholders from CEO Nick DeanHighGuy420 wrote: The reason why profits are not increasing by the same percentage, is because they are buying their patients and subsidizing sales with the following fund.
https://www.newswire.ca/news-releases/emblem-establishes-temporary-patient-access-investment-fund-to-partially-cover-medical-cannabis-excise-tax-697662461.html
This is not a subsidization. The fund offsets the tax that is paid on medical marijuana as of legalization. Every major LP (aurora, Aphria, Canopy) does the same thing, in fact they offer double the "subsidy" that emblem does and in fact emblem was criticized for not offering the same subsidy the other LP's did.
That's not the reason why profit's aren't increasing, sales increased 283% YoY, and virtually none of the recreational sales made it into the quarter. Sales are in fact rising in proportion to patients, and rising much faster than expenses. If you add up the projected income sources for 2019 they will total over 37 million, which is enough to give a decisive profit. And no that doesn't depend on the aphria supply, that is just emblem supply. If Aphria supply goes through they are projected to have 87 million in revenue for 2019. But don't worry, if you say uninformed things I will correct you. If you insist on making bad faith arguments, I will make troll you like you've never been trolled before :).
HighGuy420 wrote: Once you remove the subsidies, will the patients still buy from Emblem?
Their expenses are also increasing, so the question is, are they spending wisely?
What they need to do is outline their 1, 3 and 5 year plans. Expenditures, investments, capital allocation, streams of revenue, profits, etc. They need to outline a plan to create sustainable escalating profits.
that's not a subsidy. Emblem's rate of capital burn is so low that they can last at current revenues for 3 years. Can anyone else say that? I think not.