Emblem Corp EMMBF

Reality check

[PrimeTime35]

This is from thier May 30th news release

" the Company expects to be able to complete the first 100,000 sq. ft. production capacity expansion on its newly acquired land in Paris, Ontario without the need to raise additional capital."

and on monday this was announced. 

"The Company intends to use the net proceeds of the Offering to fund construction of the first 100,000 sq. ft. production facility on the 80 acre property located in Paris, Ontario, which was acquired in May 2017, and for working capital. It is anticipated that built-out production capacity will be used to address the adult recreational market in Canada upon legalization."


Remember folks this is production facility 1 of 3, and therfore further dulition is going to be needed to build production facilties 2, and 3.

[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

[cressco]

We'll know a lot more once we see what sort of numbers they can generate with the oils and the pharma division as they intend "submit a number of more advanced formulations of cannabis medication to Health Canada for approval during 2018". Some what on topic, I am reading that these three facilities (100K SQ FT each) will be able to grow around 10K KGs at the yield of "1 gram

[deminimis]

The move to a natural gas CoGen should not have any impact on plant yields, that is purely an energy cost savings play. The 10k kg projection is based on the 1 gram per watt which what they have stated is their current yield but they have clearly had yield issues do not being able to control temperature and or humidity levels properly in their grow room. This is why they have had to halt

[deminimis]

Correction, I meant to say that I am going to assume the impact to yields from better genetics will NOT be huge. 

[NextRealRun]

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[cressco]

Thanks for your input.  I agree with your points, just surprised at their initial claims of 70K vs the claims in the MD&A, and what sort of efforts would take to get close to those initial 70K claims. A lot of inconsistencies in reporting nontheless. Regards