RE:RE:It's a Con!One person's folly can be another's fortune.. Just take the opposite side of these dilusional people..
I'm very curious about the mechanics of the private placement that was completed in December 2016. The company sold shares for $1.15 (with some warrants) but the trading price was $4.60 at the time. I have never seen such a steeply discounted private placement in my life. The company certainly wasn't doing it because they wanted to give profits to the new investors. The company wanted to grab as much money as possible, and basically tricked the investors by presenting a situation that is "too good to be true". Now those investors are starting to figure out the fact that Emblem probably will never be profitable. None of the investors are worried yet, because they all have a nice profit on paper. But of course it would be impossible for all of them sell at a profit. The more investors that walk away from Emblem with their profits, the lower the share price will go, and the more investors will lose confidence in the stock, and sell too, pushing the price lower... The stock is stuck in this vicious cycle.... Soon we are going to hit the breaking point, where there is a stampede to the exit, and it is going to crash the stock.
It is going to happen before the factory comes online and starts producing weed that goes straight into inventory and never gets sold. The fundamentals don't make sense. The company has never produced a profit, and it looks like it never will. But management clearly put a lot of thought into how they could raise as much money as possible. Now the share price rests on the whims of those delusional investors, who are correctly losing confidence.
counterintuitive247 wrote: Jams they are under some spell, I saw this crock of bs right away after their Q1 . The warrants are ridiculous. A company should not have expired on warrants till its profitable and with a smart business plan that's 4 years from now. Year 1 being when it's actually legalized. Also the black market is as strong as it was last year in the MJ industry. People don't get it that back in 2012 anyone could get a grow license in BC and grow legally and today those licences still remain . Grandfathered! And the backmarket he des exists. No problem. Good luck . It will be better when this stock and the other MJs are worth 25% of today's value.