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.

[gkmackdadzzz1]

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[deminimis]

OpEx would be significantly more for a closed box system. I think greenhouses enjoy much more energy savings benefits from CoGens compared to closed box. The idea behind a CoGen is that you burn all of the natural gas that you were going to anyway for heating purposes and use the CoGen to create almost free electrify while you are at it. One of the benefits they were highlighting for closed box is

[deminimis]

This post seems a whole lot more relevant now. What do you guys think?

[spasticated]

seems to sound like the logical preference to me. had you mentioned all of your opinions to any of the management? what exactly were the main advantages of closed box vs greenhouse? seems like greenhouse is better in every way 

[gkmackdadzzz1]

This post has been removed in accordance with Community Policy

[cressco]

If the following (taken from the August's MD&A) ..."The Emblem cultivation team has enjoyed considerable success in increasing major cannabinoid content in our dried flower products; but possibly more important, the team has produced continuous increases in minor cannabinoid and terpene content. These developments bode well for medical dried flower sales and for the quality of Emblem